German stocks edged lower in cautious trade on Thursday as U.S. yields rebounded amid bets on higher rates.
U.S. yields rose overnight, with the benchmark 10-year Treasury yield rising 1.7 basis points to 1.5808 percent ahead of jobs and GDP data due today and inflation on Friday.
The downside remained capped after survey results from the market research group GfK showed German consumer confidence is set to improve in June.
The forward-looking consumer confidence index rose to -7.0 in June from revised -8.6 in May. Nonetheless, the reading was weaker than the economists’ forecast of -5.2.
Rolf Bürkl, GfK consumer expert, said “We are leaving the third wave behind us more and more, the incidences have been falling significantly for several weeks.”
“We are also making great strides in vaccination. As a result, openings and a departure from strict lockdown are possible,” Bürkl added.
The benchmark DAX dropped 37 points, or 0.2 percent, to 15,412 after ending 0.1 percent lower the previous day.
Bayer shares slumped 4.3 percent. A federal judge rejected the company’s $2 billion Roundup settlement, saying in an order it would not adequately address the concerns of families who may later be diagnosed with non-Hodgkin’s lymphoma.
Sportswear firm Puma gave up 2.2 percent after France’s Kering said it is selling a 5.9 percent in the company.
Home improvement superstore operator Hornbach Group fell over 5 percent after saying it expects adjusted EBIT to fall short of the prior year level in fiscal 2022.
Market Analysis
DAX Dips As Yields Rise
2021-05-27 08:31:56
