Investors are fleeing the European stock markets

Investors are fleeing the European stock markets for fear of rising prices and interest rates. Dax and EuroStoxx 50 closed 1.8 and 1.9 percent lower. "With the return of inflation, it is to be expected that the huge economic stimulus programs in the US, Great Britain, the EU and other countries will be scaled back sooner rather than later," said analyst Susannah Streeter from the brokerage firm Hargreaves Landsdown. Rising interest rates not only increased financing costs for companies, but also made bonds an attractive alternative for investors again, said portfolio manager Thomas Altmann from investment advisor QC Partners. "Both of these factors mean that the currently high share valuations are becoming more and more difficult to justify." The US consumer price data due on Friday could be decisive for the further development on the stock exchanges. "The Fed's tolerance for inflation is limited," warned DBS Bank analysts. Analysts expect an average inflation rate of 3.6 percent year-on-year for April. In the previous month, the value was 2.6 percent. Depending on how the numbers turned out, further losses on the stock market must be expected, said investment strategist Sebastien Galy from Nordea Bank's asset management team. Naeem Aslam, chief market analyst at the brokerage house Avatrade, warned against it to be prudent. The current price setbacks are overdue and healthy. With the economic outlook improving thanks to advances in coronavirus mass vaccinations and the expected recovery in the global economy, he sees the current sell-off as an opportunity to get started.