German stocks experienced a downturn on Thursday, following recent projections indicating that Federal Reserve officials now anticipate just one interest rate cut this year, down from the three originally forecast in March.
In other news, Germany’s wholesale prices continued their downward trajectory in May, though the decline occurred at a slower rate, according to data from Destatis.
Specifically, wholesale prices fell by 0.7 percent year-on-year in May, which represents a slower decline compared to the 1.8 percent decrease recorded in April. The trend of decreasing wholesale prices has been ongoing since May 2023, with the latest figures marking the slowest reduction in this series.
On a monthly basis, the inflation rate for wholesale prices eased to 0.1 percent from 0.4 percent in April. This marks the third consecutive monthly increase.
The benchmark DAX index dropped by 133 points, or 0.7 percent, to 18,498, reversing some of the 1.4 percent gain made in the previous session.
Additionally, bond yields across the euro zone increased, with the yield on the German 10-year bund last noted at 2.551 percent.