Interest Rate Increase and Its Impact on Stock Markets
The recent increase in interest rates in the bond markets has caused nervousness among investors and led to losses on the European stock market on Thursday. The DAX fell by 0.5 percent to 23,999 points, while the Euro-Stoxx-50 also fell by 0.5 percent to 5,424 points.
Significance of the US Bond Markets
A particular focus is on developments in the US bond market, which are also relevant for private investors and savers in the German-speaking region. The yields on US government bonds are rising due to factors such as trade tariffs and a more expansive fiscal policy in the USA and Europe.
European Central Bank and Monetary Policy
In Europe, the European Central Bank has lowered key interest rates several times since June 2024. It is currently expected that the ECB will lower the deposit rate by 25 basis points to about 2.0 percent in June 2025. However, this scenario could end in the second half of the year, depending on inflation and economic growth.
Consequences for Investors
For investors, the rise in interest rates primarily means increasing yields on new bonds, which puts existing bonds with lower coupons under pressure. Higher interest rates increase financing costs and make alternative investment forms more attractive, fueling uncertainty in the markets.
In summary, it emerges that the rise in interest rates in the bond markets leads to nervousness among investors in Europe, putting pressure on European stock markets. Developments in the US bond market are particularly relevant, while the ECB is expected to soon suspend its rate-cutting course.
This dynamic illustrates the interconnectedness of global financial markets and the sensitivity of investors to monetary policy signals from the USA and Europe.