German stocks opened lower on Wednesday, driven by concerns about inflation and signs that valuations for the most popular stocks were stretched.
U.S. Treasury yields held near their highest in a year as vaccine rollouts and stimulus measures spurred bets of a likely spike in inflation.
Tonight's Fed meeting minutes might provide some reassurance that monetary policy is likely to continue supporting markets and the economy.
The benchmark DAX dropped 44 points, or 0.3 percent, to 14,020 after closing 0.3 percent lower the previous day.
Beiersdorf AG shares slumped 5.4 percent. The maker of Nivea, Eucerin and La Prairie products said that it did not expect a recovery in profitability in 2021.
Banks gained ground on expectations they would benefit from higher yields.
Commerzbank climbed 1.4 percent and Deutsche Bank rallied 1.8 percent.
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