With no prospect of an end to interest rate hikes, investors have fled equities for the time being.
Expected rate hikes by the ECB and the Bank of England gave investors no reason to be satisfied. Above all, the projections of the US currency watchdogs, which point to further interest rate hikes instead of a turnaround, are viewed critically.
After the European Central Bank's decision, the Dax fell to its lowest level in almost a month. Most recently, the leading German index lost 1.9 percent to 14,185.34 points. The MDax fell by 1.25 percent to 25,552.54 points, while the leading euro zone index, the EuroStoxx, lost 2.1 percent. The US stock exchanges were also expected to be under pressure.
The European central banks, including the Swiss and Norwegians, did the same as the Fed and met expectations with their rate hikes on Thursday. However, the focus of the debate is more on the foresight: the ECB caused a stir with higher inflation expectations and a cut growth forecast for 2023.
"This makes the feared stagflation scenario a good deal more likely," wrote market observer Thomas Altmann from QC Partners. Investors were also critical of the statement that the ECB intends to gradually reduce its bond holdings from March onwards. According to Altmann, things then get really serious. "By not fully reinvesting the repayment amounts from maturing bonds, the ECB will withdraw liquidity from the market."
Positive price developments were rare in the three major indices of the Dax family. Deutsche Telekom, which investors value as a defensive investment, performed best in the leading index with a discount of 0.2 percent. Lufthansa was an exception in the MDax: The papers continued their recovery with an increase of 1.2 percent.
The losers' lists included stocks for which rising interest rates are seen as a problem. The shares of the fashion retailers Zalando and About You fell by almost six percent, while those of Delivery Hero in the MDax lost almost four percent.
Following the ECB decision, the euro pared its losses somewhat by paying $1.0648 most recently. The ECB had set the reference rate at a similar level the previous day at $1.0649. On the bond market, the current yield fell to 1.89 percent from 1.92 percent the previous day. The Rex pension index rose by 0.22 percent to 128.71 points. The Bund future recently lost 0.59 percent to 139.41 points.
