Rate-Cut Hopes Fade on IFO Data
May 03, 2011
The weighted 30-share IBIS DAX stock index, which tracks prices in electronic trading, slipped 27.68 to 2524.44. In the earlier floor trading session, the weighted DAX stock index of 30 blue-chips fell 16.52 to 2543.74 points. Traders said that early losses in Wall Street added to pressure from climbing bond yields. The German bond market weakened as hopes for a cut in the German central bank's securities repurchase rate were dashed by a surprisingly strong upswing in business confidence in July. Germany's IFO economic research institute said Wednesday its July Economic Climate Index stood at 94.1, up from June's index level of 90.4. On the local bond market, the benchmark 10-year bond was priced at 99.64 to yield 6.30% late Wednesday, down from 99.93 to yield 6.25% late Tuesday. In corporate news, ball-bearing maker FAG Kugelfischer fell 1.30 marks, to 19.05, despite news the company's net profit rose 7% in the first six months of 2011. Orders, however, were down 18%.
