Stock markets react to interest rate fears: DAX and MDAX are losing significantly

Stock markets react to interest rate fears: DAX and MDAX are losing significantly

The German stock market reacted to increasing fears of 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. The annual increase so far has shrunk to a total of six percent. The MDAX also lost 1.79 percent and closed at 25,973.85 points.

This reaction was mainly due to rising yields in the US bond market, which temporarily rose to 4.7 percent for ten-year bonds. Investors were concerned about continued strong US economic data, including the jobs report and retail sales, as well as persistent inflation. Uncertainty surrounding possible interest rate hikes in the world's largest economy increased investors' interest rate fears and led to increasing nervousness in the markets.

Concerns about a possible escalation in the Middle East also weighed on market sentiment. Israel is considering responding to a suspected major Iranian attack, which could lead to further tensions in the region.

In an industry comparison, steel companies such as Salzgitter and Thyssenkrupp recorded significant losses due to high Chinese steel exports, which put a strain on European manufacturers. In contrast, companies such as Evonik and Nordex recorded price gains, with Nordex recording an increase after the announcement of incoming orders for the first quarter.

The general negative mood was also reflected in the EuroStoxx 50, which fell by 1.35 percent to 4916.99 points. There were also sharp price losses in Paris and London. At the close of trading, the euro was trading at $1.0625, while the current yield on the bond market rose to 2.49 percent from 2.43 percent the day before. The Bund future lost 0.50 percent to 131.25 points.