Frankfurt's stock exchange in action. - Concerns over interest rates cause a decline in the DAX.
Worry over the future actions of central banks like the European Central Bank has investors being cautious. Today, it was reported that consumer prices in Germany in May slightly increased compared to April. This data could play a part in the ECB's decision regarding interest rates in the upcoming week, with potential for the first cut and uncertainty about the aftermath.
Shares of Douglas experienced a dip of 2.9% since their re-listing on the stock market in March. Lufthansa shares suffered a 2.8% drop due to line-crossing by US competitors, American Airlines, who downgraded their profit estimates.
Bucking the downward trend, Adidas gained 2.2%, mirroring the upward movement of US sporting goods company Dick's Sporting Goods due to their better-than-expected financial report.
Analysis also played a role in the market, sending the stock of Delivery Hero into a tailspin. They lost 6.4% after investment bank Morgan Stanley decided to remove their recommendation for the German food delivery service in their sector study.
The Eurozone benchmark index, EuroStoxx 50, was affected, going down 1.33% to 4963.20 points. The Paris Cac 40 felt stronger losses, while London's FTSE 100 saw less pronounced losses. New York's Dow Jones Industrial also saw a 1% decline at the European market close.
At the bond market, the circulation rate went from 2.62% on Tuesday to 2.67%. The bond index Rex dipped 0.23% to 123.68 points. The Bund future slid 0.52% to 129.00 points in the evening. The euro was valued at 1.0811 US dollars at the end of trading, with ECB setting the reference rate at 1.0857 dollars during the daytime.
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The DAX, Germany's primary stock market index, experienced a decline due to concerns over interest rates, specifically from the European Central Bank. The MDAX, another major index in Frankfurt, also reflecting the city's stock exchanges, followed suit. These interest rate worries could potentially impact companies like Lufthansa, as inflation rates in Germany slightly increased in May. Douglas, a German retail company, has also seen a decrease in shares since its re-listing on the stock market.
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