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Stock market reacts to interest rate fears with losses
The Frankfurt stock exchange is weakening: German stock markets are reacting to interest rate fears with losses. US yields rise, nervousness grows. Current developments in the DAX and MDax.
Stock market reacts to interest rate fears with losses
The German stock market reacted to increasing concerns about persistently high interest rates with significant losses on Tuesday. The DAX continued its correction that had been ongoing since the beginning of April and closed 1.44 percent lower at 17,766.23 points, reducing the annual increase to six percent. At the same time, the MDax of medium-sized stocks lost 1.79 percent to 25,973.85 points.
Yields on the US bond market temporarily rose to 4.7 percent for ten-year bonds, while investors have doubts about a rate cut in the US given the strong US economic data and stubborn inflation. The growing fear of interest rates and the nervousness in the markets increased with every new price decline, as noted by financial market experts.
In addition, fears of escalation in the Middle East are fueling market uncertainty as Israel reportedly will not let a major Iranian attack go unanswered. Among the DAX stocks, Fresenius was the best performer, recording an increase of 4.6 percent after the company announced the market launch of the biosimilar Tyenne in the USA. On the other hand, automobile stocks such as Porsche AG and BMW recorded losses of around three percent each.
Furthermore, Evonik's preliminary quarterly figures received a positive response on the markets, with a premium of 0.7 percent for the shares in the MDax. Analysts highlight expectations for the full year. Similarly, Nordex shares posted price gains of 1.1 percent following the announcement of first-quarter orders. Steel stocks, on the other hand, suffered losses, which was reflected in the prices of Salzgitter and Thyssenkrupp.
At the close of trading, the EuroStoxx 50, the leading index for the euro zone, lost 1.35 percent to 4,916.99 points. The stock exchanges in Paris and London also recorded significant downward movements, while the stock exchanges in New York were slightly up at the European close. The euro was trading at $1.0625 after the market closed, and on the bond market the current yield rose to 2.49 percent from 2.43 percent the day before, while the Rex bond index fell 0.27 percent to 124.72 points.