rates up stox down.....Blll Gross ls jumpln'......German stocks slid 3% on Wednesday, knocked lower by a sharp rise in the euro against the dollar after weak U.S. growth data underscored anticipation the Federal Reserve will delay a hike in interest rates.Germany’s DAX 30 DAX, -3.21% which has been a beneficiary of euro weakness this year, saw the biggest point decline since October 2008, down 378.94 points, or 3.2%, to 11,432.72. The drop also marked the largest percentage decline since March 3, 2014, according to FactSet data.
At the same time, the Stoxx Europe 600 SXXP, -2.21% fell 2.2% to 397.30, its lowest close since late March.
European and U.S. stocks SPX, -0.37% were hit after the U.S. Commerce Department said the economy grew at a 0.2% annualized pace in the first quarter, missing expectations for 1% growth. The quarter was marked in part by a surge in the U.S. dollar that curbed American exports.
The report appears to be “the first of many somewhat subdued GDP figures and given what’s happened with dollar strength and the movement in oil prices, I think this is likely to be a slower period of growth for the U.S.,” said Joshua Mahony, market analyst at IG.
A recent run of soft economic data has underpinned the view that the Fed will hold off in raising interest rates until at least September. The Federal Reserve will release its monetary policy statement after the close of European trade Wednesday.
The euro EURUSD, +1.28% rallied to $1.1172 following the report of meager U.S. growth. The euro has gained more than 5% against the greenback since it fell below $1.05 in mid-March. The euro’s losses throughout much of this year have come in part because “indecision” in the market about the outcome of Greece’s persistent debt crisis, said Mahony.
“Finally after this prolonged downtrend, we’re starting to see some questions about what was a one-way bet for many people about the eurodollar.”
Read: The euro is having its best day in 6 weeks
Data: A preliminary report on German consumer prices in April met expectations. The CPI declined 0.1% on a month-over-month basis, and was up 0.4% year-over-year. The yield on the benchmark 10-year Bund TMBMKDE-10Y, +73.57% rose 13 basis points to 0.28% as prices fell
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