Concerns about inflation: Dax slips below the 15,000 mark

Concern about inflation
Dax slips below the 15,000 mark

The US markets dictate it: The German equity floor is going down sharply right from the start on the holiday. The Dax is trading significantly lower and falls below the last round mark of 15,000. Auto and financial stocks in particular have suffered.

Dax 15,018.34

The German stock market cannot escape the inflation worries in the markets. The unexpectedly sharp rise in US consumer prices had fueled the sell-off on Wall Street the day before. In this wake, shortly after the start of trading, the Dax slipped below the round mark of 15,000 points for the first time in a week. Most recently, the leading German index was 2.2 percent lower at 14,822 points (as of 10:40 a.m.). The biggest Dax losers included auto stocks and financial stocks.

“The positive news like the progress of the vaccination campaign in the European Union and an economic recovery after the crisis are already priced in, while inflation concerns are mounting,” said strategist Milan Cutkovic of the trading house Axi.

Fear rages in US markets that price pressures could stifle the recovery of the world’s largest economy. Because the US Federal Reserve could turn the interest rate screw faster than expected, which could make stocks less attractive compared to bonds and worsen financing conditions for companies. The highest increase in US consumer prices since September 2008, reported for April, had recently caused prices on Wall Street to collapse further.

The Asian markets also followed the weak targets deeply into the red. In this wake, the broader market in this country also went downhill: The MDax fell by one percent to 31,323.70 points in early Thursday trading. The leading euro zone index lost 1.25 percent to 3898.26 points. Bitcoin was not spared either and slipped by more than six percent after Elon Musk announced that Tesla will no longer accept the cyber currency as a payment method due to environmental issues.