German shares declined in the opening minutes of trading on the Frankfurt stock exchange Wednesday, while the euro was at a four-week low on currency markets in the wake of the latest Fed rate hike. The 30-share DAX fell 1.01 per cent to 4277 points in the first few minutes, while the MDAX list of 70 mid-caps dropped 0.48 per cent to 5619 points. The technology index TecDAX lost 0.64 per cent to 525 points. The euro was cited at 1.3064 dollars, the lowest level in four weeks as markets took a Fed warning about inflation as a sign of more U.S. rate hikes ahead. The euro level contrasted with the European Central Bank pegging Tuesday at 1.3175 dollars. Late Tuesday, the Fed's Open Market Committee raised its key rate by one-quarter point to 2.75 per cent, further widening the gap with the ECB's main refinancing rate of 2 per cent. But it was the Fed's comment cautioning about rising inflationary pressures over the past few months which market analysts took as a signal that the Fed will continue to raise its rates, possibly at an accelerated pace.
