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Fear of interest rates is causing heavy losses on the German stock market
Read the latest developments on the stock market - German stocks fall due to interest rate fears and geopolitical tensions. Find out more at Kölner Stadt-Anzeiger. #stock market #finance #stock market
Fear of interest rates is causing heavy losses on the German stock market
In response to increasing fears that interest rates will remain high, the German stock market reacted with heavy losses on Tuesday. The DAX continued the correction that had been ongoing since the beginning of April and closed 1.44 percent lower at 17,766.23 points. As a result, the increase since the beginning of the year has fallen to six percent. The MDax of medium-sized stock market stocks also 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. Investors are beginning to doubt whether there will be a rate cut at all this year given the strong US economic data and persistent inflation. This “interest rate fear” has investors firmly in its grip and general nervousness increases with every price decline, according to financial market expert Andreas Lipkow.
Furthermore, concerns about further escalation in the Middle East hover over the market, as Israel says it will not leave the major Iranian attack unanswered and is considering further steps.
Fresenius recorded the largest profit in the Dax, with an increase of 4.6 percent. The company announced the U.S. launch of biosimilar Tyenne, a copycat product of a previously patent-protected antibody.
However, with regard to automobile stocks such as Porsche AG and BMW, there were losses of around three percent each. Steel stocks such as Salzgitter and Thyssenkrupp also suffered losses due to record high Chinese steel exports, which are having a negative impact on European manufacturers.
The EuroStoxx 50 lost 1.35 percent to 4916.99 points, while the stock exchanges in Paris and London also recorded significant losses. On the stock exchanges in New York, however, there were slight gains at the European market close.
The euro was trading at $1.0625 after the market closed. The European Central Bank (ECB) set the reference rate at 1.0637 US dollars in the afternoon.
On the bond market, the current yield rose from 2.43 percent to 2.49 percent, while the Rex bond index fell by 0.27 percent to 124.72 points. The Bund future fell by 0.50 percent to 131.25 points.