German stocks fell sharply on Thursday after the minutes from the Fed’s June meeting showed the central bank generally expects elevated inflation for the remainder of this year.
The minutes reflected a divided Fed wrestling with new inflation risks but still relatively high unemployment.
The benchmark DAX tumbled 192 points, or 1.2 percent, to 15,500 after climbing 1.2 percent the previous day.
Banks retreated as government bond yields extended their decline. Commerzbank lost 2.6 percent and Deutsche Bank gave up 2.7 percent.
Cyclical stocks such as automakers were also moving lower on economic recovery concerns. BMW, Daimler and Volkswagen fell 1-2 percent.
Automotive lighting group Hella declined 2 percent after Knorr-Bremse, a maker of breaking systems used in trains and commercial vehicles, dropped plans to acquire a 60 percent in the company held by the founding family.
Remote connectivity software specialist Teamviewer plunged 13 percent after announcing a weaker second-quarter billings growth forecast.
Sugar producer Suedzucker plummeted 4 percent after reporting a fall in Q1 operating profit.
In economic news, German exports expanded at a marginal pace in May, data from Destatis revealed. Exports grew only 0.3 percent month-on-month in May, following a 0.2 percent rise in April.
At the same time, imports advanced 3.4 percent, reversing a 1.4 percent drop in the previous month.
DAX Tumbles On Economic Recovery Concerns
2021-07-08 09:19:59
