After new US inflation data, prices on the German stock market fell again significantly on Friday. Inflation in the world’s largest economy climbed to its highest level in more than 40 years in May.
After new US inflation data, prices on the German stock market fell again significantly on Friday. Inflation in the world’s largest economy climbed to its highest level in more than 40 years in May.
Investors are therefore worried about even faster monetary tightening measures by the central banks, which could harm riskier asset classes such as equities. Experts are warning of falling corporate profits, a further deterioration in consumer sentiment and ultimately the economy slipping into recession.
Given these scenarios, the Dax fell below the 14,000 point mark and closed 3.08 percent lower at 13,761.83 points. It was his fourth day of losses in a row, so the weekly balance sheet is also very weak at minus 4.8 percent. The leading German index could now return to its recently cracked downward trend since the beginning of the year. The MDax of medium-sized stock exchanges lost 2.97 percent on Friday to 28,768.98 points.
With minus 3.36 percent to 3599.20 points, the leading euro zone index EuroStoxx 50 also suffered from the gloomy prospects for the stock market. The leading stock exchanges in Paris and London also went down significantly. In New York, the leading index Dow Jones Industrial fell by almost two and a half percent at the close in Europe, and concerns about growth on the Nasdaq technology exchange pulled prices down even more.
Concerns about the economy in view of high inflation and rising interest rates weighed on bank stocks across Europe. Banks actually benefit from higher interest rates, but it is of little use to them if the economy cools down significantly at the same time. Deutsche Bank shares lost 5.9 percent at the end of the Dax. Commerzbank’s shares fell by 5.6 percent in the MDax.
Against the background of the turnaround in interest rates in the euro zone, real estate values were also weak. Vonovia lost 3.3 percent, and TAG Immobilien lost 6.3 percent in the MDax. Instone even slipped by 13 percent including the dividend deduction in the SDax.
Knorr- Bremse got off relatively lightly with a drop of 0.8 percent. A fresh buy recommendation from Citigroup supported the shares of the manufacturer of braking systems.
The euro came under a lot of pressure and was last listed at 1.0514 US dollars. The European Central Bank had set the reference rate in the afternoon at 1.0578 (Thursday: 1.0743) dollars, the dollar cost 0.9454 (0.9308) euros.
On the bond market, the current yield rose from 1.24 percent on the previous day to 1.31 percent. The Rex pension index fell by 0.36 percent to 133.07 points. At the Xetra close, the Bund future fell by 0.62 percent to 146.88 points.
