German stocks fell sharply on Friday as Federal Reserve Chair Jerome Powell’s remarks failed to soothe investor worries about higher inflation and borrowing costs.
Investors ignored data from Destatis showing that German factory orders grew more than expected in January, driven by foreign demand.
Factory orders expanded 1.4 percent month-on-month in January, reversing a revised 2.2 percent fall in the previous month. Orders were forecast to climb 0.7 percent.
Domestic orders dropped 2.6 percent, while foreign demand grew 4.2 percent in January. On a yearly basis, factory orders growth slowed to 2.5 percent from 6.1 percent in the prior month.
The benchmark DAX dropped 143 points, or 1 percent, to 13,913 after closing 0.2 percent lower the previous day.
Lender Commerzbank fell 1.5 percent while Deutsche Bank was up 0.7 percent.
Automakers BMW, Daimler and Volkswagen all fell around 1 percent.
Nordex Group declined 1 percent after its earnings before interest, taxes, depreciation and amortization (EBITDA) fell over 24 percent in 2020.
Market Analysis
DAX Tumbles On Inflation Concerns
2021-03-05 08:51:47
