DAX Falls by 1.53%, as European Shares Tumble to 20-Month Lows

Forex News

European markets fell sharply today, after heavy losses in the US overnight, amid fears of relatively high interest rates and an expected slowdown in global growth. Some European shares are falling to 20-month lows. The German DAX index fell by 1.53% to 11.533 level. The DAX showed its lowest level since February 2017. The DAX posted heavy losses overnight and has fallen 4.2% this week.

Global stock markets have fallen amid heightened concerns about global economic growth and rising interest rates. The International Monetary Fund (IMF) warned that increased trade disputes could lead to a sudden deterioration in sentiment with a risk that will cause a large-scale correction in global capital markets and a sharp tightening of global financial conditions.

Today, the European Central Bank is scheduled to publish accounts of its latest policy meeting. The minutes could lend a helpful hand to the euro if policymakers appear overall more hawkish than Mario Draghi did in his press conference. Draghi emphasized that a tighter labor market will push wage growth higher in the Eurozone and therefore lift the underlying inflation.