Germany Stock Market Index (DE40)2022 Data - 1987-2021 Historical - 2023 Forecast

European equity markets fell sharply on Friday, with Germany's DAX down 2% to a 2-year low, as growth worries dampened sentiment once again following weak flash PMI data. Business activity in the Euro Area contracted for a third consecutive month and the German economy deteriorated at a rate not seen outside of the pandemic since the global financial crisis. The DAX lost 3.5% during the week, as central banks unleashed a wave of rate hikes to fight inflation. The US Federal Reserve delivered its third straight 75 basis point rate hike to combat inflation, along with increases by the Bank of England and the Swiss National Bank, among others. The European Central Bank is also expected to raise rates further, with policymaker Isabel Schnabel saying Thursday that elevated inflationary pressures in the Eurozone are likely to be more persistent than anticipated. Meanwhile, the benchmark Stoxx 600 dropped over 4% this week, and more than 2% only on Friday to close at around 9-month lows.