German stocks fell sharply on Tuesday, with a surge in coronavirus cases across Europe and rate-hike worries weighing on sentiment.
Fed Chair Jerome Powell’s nomination provided a little bit more legitimacy to market pricing in terms of policy tightening next year.
Closer home, investors ramped up their bets on an ECB rate hike next year after ECB policymaker Francois Villeroy de Galhau, said on Monday that the central bank is “serious” about ending its emergency bond-buying program in March and may not need to expand regular asset purchases to cover the shortfall.
Separately, board member Isabel Schnabel said today that the risks to inflation are skewed to the upside and that plans to end pandemic emergency bond buys remain valid.
In economic releases, IHS Markit’s flash Germany composite purchasing managers’ index rose to a two-month high of 52.8 from 52.0 in October.
The benchmark DAX fell 212 points, or 1.3 percent, to 15,903 after declining 0.3 percent in the previous session.
Aareal Bank jumped almost 4 percent as U.S.-based companies Advent International and Centerbridge Partners floated plans to launch a takeover offer for the German commercial real estate lender.
Utility E.ON tumbled 3.6 percent after it announced new financial earnings and growth targets for its core businesses until 2026.
Steelmaker ThyssenKrupp plunged 6 percent on news that Swedish activist fund Cevian is placing a 6.9 percent stake in the firm.
DAX Tumbles On Rate-hike Worries
2021-11-23 09:19:55
