On Tuesday, the German stock market reacted to increasingly evident fears that interest rates would remain high with strong selling. The correction of the Dax since the beginning of April continued: the main German index closed with a fall of 1.44 percent, to 17,766.23 points. The increase since the beginning of the year has slowed to six percent. The MDax of mid-sized stocks lost 1.79 percent to 25,973.85 points on Tuesday.
Yields in the US bond market temporarily rose to 4.7 percent for ten-year bonds. In light of strong US economic data, such as the labor market report and retail sales, as well as persistent inflation, more investors are wondering whether there will even be an interest rate cut this year in the world's largest economy. world. Fears about interest rates are once again controlling investors and the nervousness that has been evident since the beginning of April increases with each new drop in prices, said financial markets expert Andreas Lipkow.
Furthermore, concerns about further escalation in the Middle East hang over the market because, according to the country's military leadership, Israel does not want to leave the important Iranian attack unanswered. Next steps are being considered, he said.
Fresenius wants to bring Tyenne to the US, shares rise
On the Dax, Fresenius was the best value, gaining 4.6 percent. The clinic operator and the healthcare group announced last night the launch of the biosimilar Tyenne on the US market. It is a copy of the previously patented Tocilizumab antibody against various autoimmune diseases.
Shares in consumer goods and adhesives maker Beiersdorf rose 1.1 percent after raising the sales target for 2024. Automotive stocks such as Porsche AG and BMW weakened, each with losses of around three percent.
Evonik's preliminary quarterly figures were well received: the chemical company's shares rose 0.7 percent on the MDax. Analysts still see room for improvement in market expectations for the year as a whole. Shares of wind turbine manufacturer Nordex saw a price increase of 1.1 percent following the announcement of order intake for the first quarter.
Steel stocks weaken after Chinese export figures
Steel stocks suffered losses, which in this country is reflected in the prices of Salzgitter and Thyssenkrupp with discounts of 6.7 and 5.7 percent respectively. Record Chinese steel exports are bad news for European manufacturers, JPMorgan said.
The EuroStoxx 50, the main euro zone index, lost 1.35 percent to 4,916.99 points. Things also fell significantly in Paris and London. In New York, however, stocks rose slightly at the close of the European stock market.
Current yield rises to 2.49 percent
The euro was trading at $1.0625 after the market closed. In the afternoon, the European Central Bank (ECB) set the reference exchange rate at 1.0637 (Monday: 1.0656) US dollars. Therefore, the dollar costs 0.9401 (0.9384) euros.
In the bond market, the current yield increased from 2.43 percent the day before to 2.49 percent. The Rex bond index fell 0.27 percent to 124.72 points. The Bund future fell 0.50 percent to 131.25 points.