The rate hike announced on Thursday by the European Central Bank (ECB) put pressure on stock markets. Germany’s leading Dax index fell 1.71 percent to 14,198.80 points.
After a strong Green Monday, it was the third consecutive trading day with losses. The MDax dropped 1.75 percent to 29,649.89 points.
The level of interest rates in the euro area remains unchanged, but in July the ECB intends to raise interest rates for the first time in eleven years – by 0.25 percentage point. An even bigger rate hike may take place in September. Record inflation prompts the currency guardians in the euro area to take countermeasures. The ECB raised its inflation forecast for this year to 6.8%, while lowering the assumptions about economic growth in the euro area.
Given the interest rate outlook, rising stocks in the European tech sector have come under pressure again. Chip company Infineon titles lost 3.4 percent. The shifting titles of Dax internet companies were particularly hit: Zalando and Hellofresh lost 8.5 and 7.7 percent respectively, Delivery Hero closed 4.9 percent. About You shares listed in SDax fell 9.1 percent.
Investors have long worried among online retailers that high inflation will weaken consumer demand and rising interest rates will threaten growth. The Swedish clothing chain Boozt, which has set itself targets for this year, also reminded of these major problems in the industry.
Hochtief investors had to accept a loss of 5.6 percent. Thanks to the new holdings, the construction group raises new money for the complete acquisition of the Australian subsidiary Cimic. This weakens the profits of the old owners.
Among the positive developments on the market were Beiersdorf shares, which were 4.2% in the MDax peak. higher. The impulse was delivered by optimistic sales signals from the consumer goods group, which will soon be represented in Dax again.
EuroStoxx 50, the leading euro zone index, lost 1.70%. up to 3,724.45 points The leading stock exchanges in Paris and London also closed poorly. In New York, the leading Dow Jones Industrial index was half a percent lower at the close of the European stock exchange.
Ultimately, the euro was unable to take advantage of the interest rate hike announced in the euro zone. After the close of Xetra, the single currency was traded at $ 1.0663. The ECB set the reference rate at 1.0743 (Wednesday: 1.0739) dollar in the afternoon, so the dollar cost 0.9308 (0.9312) euro.
On the bond market, the current yield increased from 1.22%. the day before to 1.24 percent The Rex bond index was calculated by 0.08 percent. lower on 133.55 points before the ECB decision. The future of the Bund lost 0.59 percent. up to 147.81 points (dpa)