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DAX tumbles amid rising rate concerns

(RTTNews) – German stocks fell sharply on Tuesday, with an increase in coronavirus cases across Europe and concerns about the rate hike weighing on sentiment.

The appointment of Fed Chairman Jerome Powell has given market prices a bit more legitimacy in terms of tightening policy next year.

Closer to home, investors increased their bets on an ECB rate hike next year after ECB policymaker Francois Villeroy de Galhau said on Monday the central bank was “serious” about ending to its emergency bond purchase program in March and may not need to extend it regular asset purchases to cover the shortfall.

Separately, board member Isabel Schnabel said today inflation risks are on the upside and plans to end emergency bond purchases in the event of a pandemic remain. valid. In economic publications, the IHS Markit Purchasing Managers’ Flash Composite Index for Germany hit a two-month high of 52.8 from 52.0 in October.

The benchmark DAX fell 212 points, or 1.3%, to 15,903 after falling 0.3% in the previous session.

Aareal Bank jumped nearly 4% as US companies Advent International and Centerbridge Partners launched plans to launch a takeover offer from the German commercial real estate lender.

Utility E.ON fell 3.6% after announcing new financial profit and growth targets for its core businesses through 2026.

Steelmaker ThyssenKrupp plunged 6 percent on news that Swedish activist fund Cevian is placing a 6.9 percent stake in the company.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.