DAX Dips As Inflation Spike Hurts Sentiment

(RTTNews) - The DAX benchmark that tracks the performance of the 40 largest companies listed on the Frankfurt Stock Exchange is trading deep in the red amidst a higher-than-expected level of inflation reading from Euro Area. Concerns about the fiscal as well as political situation in Europe also weighed on sentiment.

The index is currently trading 1.43 percent lower at 23,680.34, versus the previous close of 24,023.06. The day's trading ranged between a high of 24,003.84 and a low of 23,658.90.

In the 40-scrip index, only 4 scrips are trading in the overnight green zone.

Symrise topped gains with an addition of 0.41 percent followed by Beiersdorf that added 0.29 percent.

Fresenius Medical Care topped losses with a decline of 5.3 percent. Vonovia and Siemens Energy followed with losses of more than 3 percent. Siemens, Zalando, Infineon Technologies, Commerz Bank, Heidelberg Materials, all recorded losses of more than 2 percent.

The Dollar Index surged on Tuesday amidst the hardening in bond yields and the pound's tumble, lifting the six-currency Dollar Index 0.76 percent higher to 98.42.

The EUR/USD pair is currently trading 0.68 percent lower at 1.1629 after ranging between 1.1719 and 1.1624. The EUR/GBP pair has rallied 0.47 percent to 0.8687. The EUR/JPY pair has increased 0.28 percent to 172.87.

Ten-year German bond yields hardened 1.29 percent overnight to 2.7835 percent amidst data revealing a higher-than-expected level of inflation in the Euro Area. The yield which was at 2.7480 percent at the previous close ranged between 2.7902 percent and 2.7474 percent in the day's trading. Growing concerns about the fiscal situation also weighed on sentiment.