German stocks tumbled on Thursday as Fed Chair Jerome Powell’s hawkish tone, reflecting the upside risks to inflation triggered a dollar rally and dented the appeal of equities.
Investors ignored survey results from the market research group GfK showing that German consumer confidence is set to improve in February.
After two consecutive declines, the consumer sentiment index rose to -6.7 in February from revised -6.9 in January. Economists had forecast the index to fall to -7.8.
Both the economic and income expectations as well as the propensity to buy improved in January compared to the previous month.
The benchmark DAX dropped 248 points, or 1.60 percent, to 15,211 after rallying 2.2 percent the previous day.
Business software group SAP plunged 8 percent after it agreed to buy a majority stake in privately held U.S. fintech firm Taulia.
Lender Deutsche Bank jumped more than 4 percent after posting a surprise profit in the fourth quarter of 2021.
Power generator RWE advanced 1.9 percent after significantly exceeding its guidance for 2021.
Market Analysis
DAX Slides After Hawkish Fed
2022-01-27 09:00:52
