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DAX Slides Ahead Of Fed Decision

German stocks fell slightly on Wednesday after rallying the day before as ECB President Mario Draghi flagged more policy easing if inflation stays low.

Focus now shifts to the Federal Reserve meeting, with investors waiting to see whether the U.S. central bank would follow the lead of the European Central Bank and open the door to future rate cuts.

The benchmark DAX was down 8 points at 12,323 in opening deals after rallying 2 percent the previous day.

Rate sensitive banks were moving higher, with Commerzbank gaining 1 percent and Deutsche Bank rising 1.2 percent.

Trade-sensitive auto stocks were also moving up. BMW rose 0.4 percent, Daimler advanced 0.8 percent and Volkswagen added 0.2 percent.

In economic releases, Germany's producer price inflation slowed in May, figures from Destatis showed.

Producer prices climbed 1.9 percent year-on-year in May, after a 2.5 percent increase in April. Economists had expected a 2.2 percent rise.

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