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Dax closes 1.44 percent lower - investors worried about interest rates and the Middle East conflict
Current stock market development: German stock markets weak due to interest rate fears and geopolitical uncertainty. DAX correction continues. Reading time: 3 minutes. Financial experts warn of increasing nervousness.
Dax closes 1.44 percent lower - investors worried about interest rates and the Middle East conflict
The German stock market reacted to the growing fear of persistently high interest rates with significant losses on Tuesday. In the Dax, the correction that has been ongoing since the beginning of April continued, and the leading index closed with a decline of 1.44 percent at 17,766.23 points. The previous increase since the beginning of the year has shrunk to six percent. The MDax of medium-sized companies also recorded losses of 1.79 percent to 25,973.85 points on Tuesday.
Yields on the US bond market temporarily rose to as high as 4.7 percent for ten-year bonds as investors expressed doubts about a rate cut this year given robust US economic data and persistent inflation. These interest rate fears led to increasing nervousness among investors, which has been visible since the beginning of April and seems to be increasing with every new price decline, according to financial market expert Andreas Lipkow.
In addition, concerns about a possible escalation in the Middle East are weighing on the market, as Israel has announced, according to the country's military leadership, that it will respond to a major Iranian attack. Further steps are currently being discussed.
The company Fresenius recorded an increase of 4.6 percent as the best value in the Dax. The clinic operator recently announced the launch of the biosimilar Tyenne in the USA. The shares of consumer goods and adhesives manufacturer Beiersdorf rose by 1.1 percent after an increase in sales target for 2024. In contrast, automobile stocks such as Porsche AG and BMW recorded losses of around three percent.
Steel companies such as Salzgitter and Thyssenkrupp also posted losses of 6.7 and 5.7 percent, respectively, due to record high Chinese steel exports weighing on European manufacturers. The EuroStoxx 50, the leading index for the euro zone, fell by 1.35 percent to 4916.99 points. Stock exchanges in Paris and London also recorded clear losses, while the stock exchanges in New York were slightly up at the close of trading in Europe.
On the bond market, the current yield rose from 2.43 percent the day before to 2.49 percent. The Rex bond index fell by 0.27 percent to 124.72 points, while the Bund future fell by 0.50 percent to 131.25 points. The euro was trading at $1.0625 after the close of trading, with the ECB setting the reference rate at $1.0637 (Monday: 1.0656) in the afternoon. The dollar therefore cost 0.9401 (0.9384) euros.