After the rally, investors hit the brakes hard

Frankfurt / Main (dpa) - After the recent price gains, investors have cashed in on the German stock market on a larger scale.

Speculation that the federal government was not in such a hurry to relax contact restrictions in the virus crisis caused the Dax to slide ever deeper into the red. Later, the pressure on the US stock exchanges was added.

Most recently, the Dax lost 3.08 percent to 10,367.17 points after having gained almost 30 percent since the low of the corona crash in mid-March. The MDax fell by 1.98 percent to 21,927.47 points in the middle of the week, while the EuroStoxx 50 lost 3.16 percent to 2,825.45 points. In New York, the Dow saw a two percent reset after the previous day's gains.

In the afternoon, major US banks again reported earnings slumps in the first quarter. Papers from the banking sector were among Europe's biggest losers on Wednesday, while those of Deutsche Bank fell by 6.6 percent in the Dax.

In the Dax, only two stocks with a defensive character were able to post profits: With Merck and Beiersdorf, the two stocks, which were up to half a percent higher, came from the health and consumer goods sectors.

The most recently preferred stocks from cyclical sectors such as the auto sector appeared in the back of the Dax. The papers from BMW, Daimler, Volkswagen and the supplier Continental fell between 4.1 and 5.6 percent.

Adidas were in the secured midfield at a discount of 2.2 percent. The sporting goods group received a multi-billion dollar loan approval from the state bank KfW in the crisis - on the condition that no dividend may flow during the term.

The euro has lost ground due to investors' reluctance to take risks. The single currency fell to $ 1.0864 after just under $ 1.10 last night. The previous day, the European Central Bank (ECB) set the reference rate at $ 1.0963.

The prices of German government bonds rose on Wednesday, the Rex index rose 0.28 percent to 144.64 points. In return, the current yield fell from minus 0.36 percent the previous day to minus 0.43 percent. The Bund Future gained 0.75 percent to 172.65 points.