DAX Slides As Oil Prices, Bond Yields Jump Higher

(RTTNews) - Despite data showing an expansion in Germany industrial production, German stocks slipped into negative territory Wednesday morning as oil prices and bond yields climbed higher.

Oil prices climbed higher following more attacks on vessels in the Persian Gulf region. Brent crude front-month futures, which rose to $102.06 a barrel, were up by a little over 1% at $101.58 a little while ago.

German and French bond yields jumped amid France's deepening fiscal crisis. The yield on German Government's 10-year bond rose to 3.525% this morning.

The benchmark DAX was down 335.59 points or 1.32% at 25,113.60 a few minutes before noon.

Infineon Technologies dropped more than 5%. Deutsche Bank drifted down 2.7% and Mercedes-Benz shed about 2.3%. Siemens, MTU Aero Engines, BMW, Siemens Energy, Vonovia and Hochtief lost 1.6%-2%.

Commerzbank, Rheinmetall, Heidelberg Materials, SAP, Deutsche Post, E.ON, Allianz, RWE and Symrise declined 0.6%-1.4%.

Volkswagen rallied nearly 2%. Zalando moved up 1.8%, while Scout24, Beiersdorf and Henkel gained 1.4%, 1.2% and 1.1%, respectively.

Deutsche Telekom, Brenntag, Continental, BASF, Fresenius, Merck, Adidas and Fresenius Medical Care advanced 0.4%-1%.

Data published by Destatis showed Germany's industrial production recovered at a stronger-than-expected pace in August, expanding 2% on a monthly basis, in contrast to the 1.2% decrease in July. Production was expected to grow 0.5%.

On a yearly basis, industrial production grew 2.3%, reversing July's 1.8% fall.