DE30: DAX down sharply after Lagarde's comments

The last trading session on the German market this week brings declines in the stocks comprising the DAX index. Investor sentiment once again came under pressure from central banks, in particular the ECB and President Lagarde's remarks, which provided hawkish comments on future monetary policy. Today, investors' attention is primarily focused on PMI readings from Europe and the US.

France, PMI indices for December.

Manufacturing. Currently: 48.9; expected: 48.1; previous: 48.3

Services. Current: 48.1 Expected: 49.1 Previous: 49.3

Source: S&P Global

Germany, PMI indices for December.

Manufacturing. Current: 47.4 Expected: 46.2 Previous: 46.2

Services. Current: 49.0 Expected: 46.2 Previous: 46.1

Source: S&P Global

The swaps market is currently pricing in a near 14% chance of a 75bp rate hike at the ECB's February meeting. A 50bp hike seems certain and in line with the ECB's announcements at its last meeting. Source: Bloomberg

DE30 index chart, D1 interval. Benchmark German blue chips are trading down during today's session. Source: xStation 5

Friday's session on the German market brings declines in most sectors of the economy. Source: Bloomberg

News:

• Although the German stock market is dominated by declines today, there is one company that is trading up more than 10%. Teamviewer (TMV.DE) is negotiating an option to exit its sponsorship contract with English club Manchester United. The decision is expected to significantly improve the company's profitability.

• Shares of Ceconomy (CEC.DE) are losing nearly 3% today following Oddo BHF's downgrade of its recommendation to "underperform."

Changes in institutional holdings in individual companies of the DAX index (data from the last session). Source: Bloomberg

The largest percentage changes in the companies included in the DAX index. Source: Bloomberg

The most active stocks in the DAX index (DE30). Source: Bloomberg