FRANKFURT (dpa-AFX) - European real estate stocks had a rather difficult time on Tuesday in a largely flat market environment. The Stoxx Europe Real Estate index fell below its 200-day line as the weakest sector index, reaching its lowest level since mid-May. In the DAX, Vonovia was down around 1%, placing it in the bottom third, as was Deutsche Wohnen in the MDAX.
On the bond market, prices of ten-year securities came under pressure. The September contract for the Bund Future slipped to mid-May levels. In response, yields rose significantly, which had a negative impact on interest-rate-sensitive sectors.
The US bank Jefferies pointed out that the German commercial real estate market is weakening. According to the latest industry figures, the total volume of transactions in the first half of the year fell by 12 percent to 10.2 billion euros. In the retail real estate segment, the decline was 20 percent. The residential real estate market, on the other hand, is showing signs of recovery.
Meanwhile, Commerzbank shares rose 3 percent on Tuesday to their highest level since 2011. Deutsche Bank gained 0.9 percent. The banking sector tends to benefit from rising interest rates on the capital markets. /ag/bek/stk
