German shares drop as US may increase interest rates

German stocks on the Frankfurt market dropped as a result of concern over US possible interest rate increase.

The DAX Index lost 68.60, or 1.3 percent, to 5,069.42. All the 30 stocks except four declined.

The MDAX declined by 1.07 percent to 7,088.64 points and the TecDax fell 1.06 percent to 622.25 points

Three US Federal Reserve policy makers signaled the central bank will have to raise rates further to curb inflation.

Infineon Techno, Europe's largest semiconductor maker, declined 0.21 euros or 2.5 percent to 8.30 euros.

Volkswagen AG, Europe's largest carmaker, fell 2.41 euros or 4. 5 percent to 51.60 euros after gaining 5.1 percent Tuesday.

DaimlerChrysler AG, the world's fifth-biggest carmaker, dropped 1.03 euros or 2.3 percent to 44.45 euros.

Source: Xinhua