After two days of losses, the Dax widened its setback on Thursday before the expected monetary policy signals from the European Central Bank (ECB).

After two days of losses, the Dax widened its setback on Thursday before the expected monetary policy signals from the European Central Bank (ECB).

In early trading, the leading German index fell by 0.57 percent to 14,363.48 points. It thus approached its previous monthly low of 14,329 points. The MDax moved around the 30,000 point mark, losing 0.61 percent to 29,995.23 points. The leading eurozone index, the EuroStoxx, was also weak.

The ECB is likely to initiate the monetary policy turnaround due to the high inflation. In all likelihood, the central bank will announce the end of its net bond purchases at its meeting this afternoon. In addition, according to many bank economists, it will signal a first rate hike in July. It would be the first rate hike in more than a decade.