FRANKFURT (dpa-AFX Broker) - Real estate stocks continued their slide on Thursday. The European sector index, which had already lost more than average the previous day in the weak market environment, lost a further 1.7 percent in the wake of the continuing rise in yields on US government bonds. In the Dax, Vonovia slumped 3.6 percent, and in the MDax and SDax, TAG Immobilien and LEG Immobilien and Aroundtown were among the biggest losers.

"Who had hoped that the yields on the U.S. bond market had seen their highs two weeks ago, was (already) yesterday of a wiser," commented capital market strategist Jürgen Molnar vo broker Robomarkets. For the 30-year bonds it went "for the first time since 2007 over the sound barrier of five per cent". But also the net yield for papers with a term of ten years stands only scarcely under this mark, which means likewise the highest conditions since the world financial crisis. The trend for German government bonds also continues to point upward.

Molnar blames this development on uncertainty about the future monetary policy of the U.S. Federal Reserve and fears of an escalation of the conflict in the Middle East, which would have far-reaching consequences for the world's energy supply. This combination is driving investors into safe investments - "just looking at the price of gold speaks a clear language". Most recently, the price of an ounce of the precious metal, which is popular as a crisis currency, was quoted at just under 1950 U.S. dollars./gl/tih

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