BRUSSELS (dpa-AFX) - German stocks fell sharply on Thursday amid rising uncertainty about the status of Middle East peace talks, following Iran dismissing the U.S. plan to pause the war, and saying that an end to the conflict will only occur on Tehran's own terms and timeline.
Meanwhile, an Israeli official has reportedly claimed that the Islamic Revolutionary Guard Corps (IRGC) Navy commander, Alireza Tangsiri, who 'was responsible for the closure of the Strait of Hormuz,' has been killed in a strike in Bandar Abbas.
Fears of monetary tightening by the European Central Bank (ECB) hurt as well.
European Central Bank member and Bundesbank President Joachim Nagel said that the central bank may hike interest rates at its next meeting in April 'if the war in the Middle East raises the spectre of an inflation surge in the Eurozone'.
ECB President Christine Lagarde said Wednesday that anything more than a short-lived spike in inflation could warrant an increase in interest rates.
Rising oil prices have raised inflation concerns. Brent crude futures climbed above $100 a barrel today, gaining more than 3%.
Germany's equity benchmark DAX, which dropped down to 22,564.99, was down 271.25 points or 1.18% at 22,669.17 a little while ago.
Siemens Energy fell 4.4%. Infineon Technologies dropped by about 3.7% and Porsche Automobil Holding drifted down 3%.
MTU Aero Engines, Deutsche Bank, Zalando, Rheinmetall and Commerzbank lost 2%-2.5%. SAP, Siemens, Vonovia, E.ON, Siemens Healthineers, BMW, RWE, Continental, Fresenius, Mercedes-Benz, Volkswagen and Hannover RE fell 1%-1.7%.
Brenntag climbed 1.1%. BASF and Adidas gained 0.6% and 0.5%, respectively. Henkel advanced by 0.4% after hair care brand Olaplex Holdings said it entered into a definitive agreement to be acquired by the German consumer goods maker.
Survey results published jointly by NIQ/GfK and the Nuremberg Institute for Market Decisions showed German consumer sentiment is set to deteriorate in April due to economic concerns over the war in Iran.
The forward-looking consumer sentiment index fell to -28.0 in April from -24.8 in the previous month. The score was forecast to fall moderately to -27.3.
Data published by the European Central Bank showed Eurozone private sector credit grew at a slightly slower pace in February ahead of the war in Iran.
Loans to the private sector expanded 3.3% in February, slightly slower than the 3.4% increase in January.
Adjusted loans to households posted an annual growth of 3%, the same rate as in the previous month. Meanwhile, loans to non-financial corporations grew at a slower pace of 2.9%, following a 2.8% rise in January.
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