Dax rises to annual high and suddenly slips 100 points into the red

Dusseldorf The leading German index reached a new high for the year at 15,706 points this Tuesday. But in afternoon trading, the Dax gave back its gains and closed 0.6 percent down at 15,559 points – a minus of around 100 points. The price slide started with the beginning of US Federal Reserve Chairman Jerome Powell’s speech before Congress.

There, Powell said rate hikes will be “probably higher” than previously thought. “Should the body of data suggest that faster tightening is warranted, we would be prepared to increase the pace of rate hikes,” the central bank governor said, according to the speech transcript. According to Powell, the current trend shows that the Fed’s task of fighting inflation is not over yet.

Yesterday, Monday, the stock market barometer had already climbed to a high for the year at 15,677 points. In the current stock market year, the Dax is up around 13 percent so far.