The announcement of further significant interest rate hikes in the euro zone and the gradual reduction in bond holdings in the coming year have put the Dax under severe pressure.

The leading German index closed down 3.28 percent at 13,986.23 points and is therefore back at the level of November 10th. The MDax fell by 2.27 percent to 25,288.27 points. The stock exchanges in the euro zone also went down significantly.

"Anyone who thought yesterday that it was not possible to express more clearly than Fed Chairman Jerome Powell that the road to a more market-friendly monetary policy is still a long one has learned better today," said market analyst Konstantin Oldenburger from CMC Markets, summing up the ECB's statements and decisions together. In addition, ECB President Christine Lagarde has made it absolutely clear that even if her colleagues in Washington take a break in the cycle of interest rate hikes, she does not have to follow through.

Although the European Central Bank (ECB) raised its key interest rate by 0.5 percentage points as expected, further interest rate hikes at the same pace were promised in view of the inflation. Inflation projections have been raised and are still above target at 2.3 percent even in 2025. At the same time, the forecast for growth in the euro area was lowered. From March onwards, bond holdings are also to be gradually reduced.