Inflation Sets the Tone in German Stocks

The German DAX index has slipped close to a quarter percent in Thursday’s trade as markets digested the full import of the multi-decade high inflation in the U.S. Investors weighed in the likely fallout of the forceful inflation combat spanning interest rate hikes, withdrawal of monetary stimulus and an immediate shrinking of the Fed’s Balance Sheet on global liquidity, asset prices and interest rates.

The forty-scrip index is currently trading at 15,995.20 down 0.20 percent over the previous close. The day’s trading has been within the range of 15958.60 and 16020.72.

At current levels, the DAX is 1.8 percent lower than the 52-week high of 16289.00.

Internet retailer Zalando, Siemens Energy and electricity generation company RWE AG have all gained close to 2 percent.

Deutsche Bank, Specialty chemicals business Covestro, Biotechnology company Qiagen, software business SAP, Siemens Healthineers and Volkswagen etc. have all declined more than one percent.

Automaker Volkswagen is the most active scrip with a turnover of 40.1 million euros. The scrip has lost around 1 percent.

Around half of the scrips in the 40-scrip index have advanced from previous day’s levels.

All the DAX super sector indices except Industrials, Pharma & Healthcare and Basic Materials are in positive territory. Utilities performed the best with a gain of close to 1 percent. Pharma and healthcare subsector declined 0.84 percent.

The EURUSD pair hovered around 1.1468, 0.23 percent higher than the closing level at Wednesday, as the inflation data on expected lines, pulled down the Dollar Index to 94.82 from 94.92 on Wednesday.

The ten-year bond yield has increased by 17 percent to -0.0465 versus -0.056 percent on Wednesday.

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