DAX Drops Amidst Rising Yields

(RTTNews) - The DAX index that tracks the performance of the 40 largest companies listed on the Frankfurt Stock Exchange extended losses on Monday amidst rising bond yields and fears of a hawkish tilt in the Federal Reserve's monetary policy stance. Strong jobs data released from the U.S. on Friday weighed heavily on market sentiment.

The DAX is currently trading 0.92 percent lower at 20,065.11, versus the previous close of 20,252.41. The day's trading ranged between a high of 20,223.61 and a low of 20,044.88.

In the 40-scrip index, 12 scrips only are trading in the overnight green zone. RWE topped with overnight gains of 1.7 percent. Beiersdorf, Deutsche Telekom, Porsche and Mercedes Benz Group have all gained more than 1 percent.

Infineon Technologies topped losses with a decline of 2.9 percent. Heidelberg Materials, MTU Aero Engines, Airbus, Deutsche Bank, adidas, Munchener Ruck and Rheinmetall have all declined more than 1.5 percent.

Amidst the Dollar's surge, that lifted the six-currency Dollar Index to a high of 110.18 earlier in the trade, the EUR/USD pair has slipped 0.37 percent. It is currently at 1.0198 after ranging between 1.0250 and 1.0178. The EUR/GBP pair has gained 0.32 percent to 0.8415. The EUR/JPY pair has however decreased 0.66 percent to 160.47 as markets speculate on a looming rate hike by the Bank of Japan.

German bond yields have increased 0.92 percent overnight to 2.5915 percent. The yield which was at 2.568 percent at the previous close ranged between 2.567 percent and 2.6105 percent in the day's trading, testing the highest levels since June 2024. Rising inflation expectations in the ECB survey and expectations of fewer rate cuts in the U.S. fueled the spike in yields.