German stocks bounced back from steep losses seen on Friday amid worries the Federal Reserve could allow inflation to spiral.
Underlying sentiment, however, remained cautious after St. Louis Fed President James Bullard said that inflation risks may force the Fed to raise rates as early as next year.
The rapid economic growth is bringing faster-than-expected inflation, which could warrant a liftoff in late 2022, Bullard said in an interview with CNBC on Friday.
Investors look forward to Fed Chairman Jerome Powell’s testimony on Tuesday for more details on the central bank’s COVID-19 emergency lending and its asset purchase programs.
Traders also await a speech by European Central Bank President Christine Lagarde to the European Parliament later in the day for further direction.
The benchmark DAX inched up 37 points, or 0.2 percent, to 15,485 after declining 1.8 percent on Friday.
Banks Commerzbank and Deutsche Bank fell about 1 percent amid big unwinds in the reflation trades.
Automakers were broadly higher as the euro hovered near a 2 1/2-month low against the dollar.
Market Analysis
DAX Rebounds From Friday’s Big Selloff
2021-06-21 09:01:18
