The continued rise in bond yields caused the DAX to suffer further price losses on the day of German unity. Monetary policy statements and labor market data from the United States increased the pressure on the leading German index, which closed 1.06 percent lower at 15,085.21 points. It once again reached its lowest level since the end of March.
Since the US Federal Reserve Bank surprisingly signaled a possible further interest rate increase and even longer high interest rates almost two weeks ago, the Dax has seen a price decline of almost four and a half percent. The MDax of medium-sized companies lost 1.85 percent to 25,296.86 points on Tuesday.
Investors in Europe and the USA also gave stocks a wide berth. The Eurozone leading index EuroStoxx fell by around one percent and things also continued to decline in Paris and London. The New York leading index Dow Jones Industrial lost 1.3 percent at the end of European trading.
There wasn't much moving company news given the holiday in Germany. The recently stabilized shares of the online fashion retailer Zalando lost 5.3 percent at the end of the Dax after British competitor Boohoo frightened investors with a lowered outlook.
Given the prospect of long-term high interest rates, stocks from the capital-needy utilities sector were still not in demand. In the DAX, RWE, Siemens Energy and Eon lost between 2.8 and 3.9 percent. Stocks from the alternative energy sector were not spared either, as shown by the significant price drops of Nordex and Encavis in the MDax as well as Energiekontor, Verbio and SFC Energy in the small cap index SDax.
In contrast, the construction software specialist Nemetschek made it to the top of the MDax with a plus of 2.3 percent after positive analyst comments. The British bank Barclays gave up its previous negative vote because, after the recent price losses, it now sees opportunities and risks more balanced than before.
The euro continued its decline and was last priced at $1.0460. The European Central Bank (ECB) had previously set the reference rate at $1.0469. On the bond market, the current yield rose from 2.87 percent the day before to 2.91 percent. The Rex bond index fell by 0.29 percent to 122.26 points. The Bund future lost 0.34 percent to 127.29 points.