Interest rate concerns weigh on the German stock market - DAX loses 1.24%

Interest rate concerns weigh on the German stock market - DAX loses 1.24%

Uncertainty about a possible lack of interest rate cuts by the US Federal Reserve put pressure on the German stock market. The DAX fell by 1.24 percent to 18,175.04 points. According to chief economist Thomas Gitzel from VP Bank, the series of good labor market data does not stop, which on the one hand is positive for the US economy as it is self-sustaining, but on the other hand represents a problem for the Fed.

The statements by the president of the regional US Federal Reserve Bank in Minneapolis triggered interest rate concerns on Wall Street, which also influenced the German stock market. Fed non-voting member Neel Kashkari suggested there may be no rate cuts if inflation and economic growth remain stable. According to capital market strategist Jürgen Molnar from Robomarkets, given the situation, prices are more likely to make the news, as the Fed continuously adjusts its interest rate policy to inflation developments and the strength of the economy.

On a weekly basis, the leading index Dax recorded a minus of 1.72 percent, the first weekly minus after eight consecutive positive weeks. The MDax of medium-sized stocks lost 1.29 percent. The leading European indices such as the EuroStoxx 50, the French Cac 40 and the British FTSE 100 also slipped by around one percent each. The euro fell against the dollar, while the current yield on the bond market fell slightly.