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DAX Slides As Banks Drag

German stocks declined on Friday as a hawkish shift from the Federal Reserve stoked uncertainty about stimulus outlook and raw material prices continued their weekly decline amid actions by China to crackdown on inflation.

The benchmark DAX dropped 37 points, or 0.2 percent, to 15,690 after closing 0.1 percent higher the previous day.

Banks fell, with Commerzbank and Deutsche Bank losing around 1 percent.

Chemical distribution company Brenntag AG advanced 1.7 percent after raising its operating EBITDA forecast for the 2021 financial year.

In economic releases, German producer prices increased to the highest level in twelve-and-a-half years in May, Destatis reported.

Producer prices increased 7.2 percent year-on-year in May, faster than the 0.8 percent rise seen in April. Economists had forecast an annual growth of 6.4 percent.

This was the biggest growth since October 2008, when prices rose strongly before the financial crisis.

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