Investors in German stocks have had a dizzying ride, first enjoying a rally that sent the DAX Index to a record in April before the gauge started one of Europe’s biggest slumps.
The blame lies in part with the bond market, where German debt just had its worst week since 1998. With the correlation between bunds and stocks near a 1 1/2-year high, traders bailed out of equities, too. The DAX has fallen 11 percent from its peak and closed at a three-month low. The 10-year government bond dropped for a fifth time in six days.