DAX Slides On Rate Hike Worries
(RTTNews) - German stocks declined on Thursday amid fears that accelerating U.S. inflation could once again elicit aggressive monetary policy response from the Federal Reserve, with some economists calling for a 100-basis point rate hike.
Meanwhile, Germany's wholesale price inflation eased for the second straight month in June, though it remained strong overall, data from Destatis showed.
The wholesale price index climbed 21.2 percent year-year-year in June, slower than the 22.9 percent rise in May. The annual price growth in June was largely driven by increased prices for raw materials and intermediate goods.
The benchmark DAX fell 91 points, or 0.7 percent, to 12,665 after tumbling 1.2 percent the previous day.
Bayer AG shares were down 1.4 percent. The pharma and life sciences firm has inked a deal with Grünenthal, a company focused on pain management and related diseases, to sell its men's health product Nebido, for up to 500 million euros.
Luxury fashion house Hugo Boss rallied 3.8 percent after raising its FY outlook.
Deutsche Telekom tumbled 2.7 percent after it agreed to sell 51 percent stake in GD Towers, which comprise of tower assets in Germany and Austria, to a consortium.
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