Burdened by interest rate worries, the German stock market extended its previous day’s losses today. “Risk out is the motto at the end of the turbulent trading week,” said Konstantin Oldenburger, market analyst at CMC Markets, referring to the loss of around 600 points in the leading index Dax in the past three trading days.
Ultimately, the stock exchange barometer ended trading down 0.67 percent to 13,893.07 points. The weekly minus amounts to 3.3 percent. The MDax ended the day with a discount of 1.29 percent to 24,963.00 points. The situation was similar on the other stock exchanges in Europe. Losses were also recorded in the USA. At the close of trading in Europe, the Dow Jones lost 1.4 percent.
Concerns returned on Thursday, especially after the interest rate statements by the US Federal Reserve and the European Central Bank. Because even if the currency watchdogs no longer raise their key interest rates so significantly, they want to stick to their course in 2023 because of inflation.
Among the individual stocks, Deutsche Bank gained 2 percent and Commerzbank 5.8 percent. Banks can benefit from rising interest rates in their day-to-day business with bonds, accounts and loans.
On the other hand, real estate stocks were sold and brought up the rear across Europe. Investment bank Stifel downgraded the German sector to “neutral”. The analysts gave up their buy recommendation for TAG Immobilien – the paper fell by 6.4 percent. Vonovia papers fell by 8.2 percent.
The euro was trading at $1.0615 early in the evening. The ECB set the reference rate at $1.0619. Prices fell on the bond market. While the current yield rose to 2.18 percent from 1.89 percent the previous day, the Rex bond index fell by 1.38 percent to 126.93 points. The Bund future recently fell by 0.61 percent to 137.73 points.
