FRANKFURT (dpa-AFX) – After the strong Whit Monday, the pressure on the Dax (DAX 40) increased again on Tuesday. Equity investors worry about rising interest rates. After the leading German index had reached its highest level since the end of March at the beginning of the week, driven by the easing of corona in China, it has now fallen by 0.66 percent to 14,556.62 points. The MDAX lost 0.49 percent to 30,391.58 points.
“Once again, investors are concerned about how high interest rates could rise,” said market observer Michael Hewson of CMC Markets. Australia’s central bank has now also contributed to this, theirs monetary policy tightened by half a percentage point more than experts had expected by raising the key interest rate.
Investors are now eagerly awaiting the interest rate decision by the European Central Bank (ECB) on Thursday. Until then, they shouldn’t take any big risks, according to the trade. It is widely expected that the ECB will initiate the monetary policy turnaround this week. Many bank economists currently believe that the first rate hike could come in July. “The ECB is in a difficult position: Rising inflation rates require more aggressive rate hikes, but a much weaker economy warrants more dovish action,” wrote Vanguard economist Roxane Spitznagel./ajx/he
