DAX Down 120 Points As Risk Sentiment Weakens

(RTTNews) - German shares extended recent losses on Tuesday as risk-off sentiment continues to haunt investors.

Two ICM polls, one online and one conducted by telephone, showed on Monday that Britain appears poised to leave the European Union with just over a week to go before referendum day.

The British pound hovered near a two-month low and yields on the 10-year government debt of Germany dipped below zero for the first time ever, reflecting growing anxiety over the prospect of the U.K. exiting the European Union.

Amid lack of positive triggers, investors await monetary policy decisions from the Fed, the Bank of England, Swiss National Bank and the Bank of Japan this week for further direction.

The benchmark DAX was down 120 points or 1.25 percent at 9,537 in late opening deals after declining 1.8 percent on Monday.

Stocks pared some early losses after Eurostat figures showed Eurozone industrial output rose for the first time in three months during April, aided by a surge in the output of durable consumer goods.

Industrial production rose 1.1 percent from the previous month when it fell by revised 0.7 percent. Production was forecast to expand 0.8 percent. On a yearly basis, growth in industrial output improved to 2 percent, beating forecasts for 1.4 percent growth.

Allianz, BASF, Bayer, BMW, Daimler, Deutsche Bank, Deutsche Boerse, Deutsche Post, E.ON, Lufthansa, RWE, SAP, Siemens, ThyssenKrupp and Volkswagen were among the worst hit, with losses ranging between 1 percent and 4 percent.

Kuka dropped half a percent on a report that Chinese home appliance maker Midea Group is seeking a 49 percent stake in the German robot company.

Gerry Weber also slid half a percent after reporting in-line results in the first half of 2015/16.