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FRANKFURT (dpa-AFX) – With interest rate hikes to contain high inflation, central banks are putting increasing pressure on stock markets. An unexpectedly significant impact on Thursday rate hike Swiss National Bank (SNB) The already fragile stock exchanges in Europe are difficult. In Frankfurt, the Dax (DAX 40) fell at times to a round border of 13,000 points. It recently lost 2.46 percent to 13,154 points. It is at its lowest level since early March.
MDAX fell by 2.64 percent. up to 27,051 points. EuroStoxx 50 (EURO STOXX 50), the leading euro zone index, fell by 2.1%. Switzerland’s SMI in Zurich has even dropped to its lowest level since the end of 2020, and has recently lost 2.5%. Nervousness remains high, indirect price returns like the day before are quickly used to sell. Given now the rapid pace of improvement Monetary policy through central banks, investors see the growing risk of recession.
SNB unexpectedly raised the main interest rate by 0.50 percentage points in the morning. and saw it as a measure against inflationary pressures. According to one market participant, hardly any economist expected the SNB to join the group of central banks increasing interest rates. Even in the bond and currency markets, at most a small step was considered. As a result, the future of the Bund, which has just revived somewhat and reflects the price of a bogus long-term federal bond, is again under severe pressure. In the afternoon it lost 1.88% to 142.63 points.
In addition to the SNB, the Bank of England (BoE) also raised its main interest rate by a further 0.25 percentage points to 1.25 percent on Thursday. This is what economists expected. However, the Bank of England presented the prospect of further rate hikes.
After the recent surprisingly high inflation in the US over the past few days, investors have just adjusted to the even tightened monetary policy of the US Federal Reserve, such that a pivotal interest rate hike of 0.75%. the night before – after all, the most significant one since 1994 – was no more surprising. Now, however, the SNB has increased its concerns about inflation and growth again. There is also growing pressure on the so far indecisive European Central Bank (ECB). He announced the first interest rate hike for July.
The issue of inflation is increasingly succinctly and seriously perceived in the financial markets and valued by asset class, said market expert Andreas Lipkow of Comdirect. “In this environment, it makes no sense to rebel against a sale.” The scene is currently among the pessimistic market participants.
The market focused on online fashion stores after downgraded ASOS forecasts and disappointing Boohoo Interim Report (boohoocom). This put a lot of pressure on the titles of the German competitor Zalando. Newspapers fell more than ten percent at the bottom of Dax.
BASF and Uniper shares were also the weakest, with price losses of more than 6 percent and almost 11 percent, respectively. The main reason may be the further reduction of gas supplies to Germany by the Russian energy company Gazprom. At BASF, for example, a possible suspension of Russian gas supplies threatens production at the Ludwigshafen chemical plant.
Südzucker (Südzucker) increased its profits from the previous day by 3.3%. Warburg Research analyst Oliver Schwarz revoked his sales recommendation and thus responded to the increased targets for this year, largely due to the excellent development at CropEnergies.
Due to the high uncertainty in the financial markets, the euro also fell. In the afternoon the single currency cost $ 1.0420. The ECB set the reference rate at USD 1.0431 on Wednesday. Prices in the bond market fell sharply. Meanwhile, the current profitability rose to 1.72 percent from 1.66 percent the day before. Rex bond index (general REX price index) fell 0.27 percent to 130.47 points /ajx/stk
— Author: Achim Jungling, dpa-AFX —