FRANKFURT (dpa-AFX) - The gains in Germany's leading index, the Dax, over the past three trading days vanished into thin air on Tuesday. "There are currently too many risks lurking in the financial markets, which are currently being offset by too few opportunities," said stock market expert Andreas Lipkow.

Stubborn inflation in the eurozone, for example, is causing concern despite a decline in June. The inflation rate fell from 2.6 percent in the previous month to 2.5 percent in June. "The decline in inflation is only continuing slowly," commented chief economist Thomas Gitzel from VP Bank. The last few meters to the inflation target of the European Central Bank (ECB) are an extremely tough affair. "The ECB is also aware of this and is adjusting its interest rate policy accordingly."

Investors are also spooked by the political uncertainty in France. And not just because of the run-off election this Sunday, as chief market analyst Jochen Stanzl from CMC Markets said. A political deadlock, as is expected after the parliamentary elections, also increases the economic risks.

Ultimately, the Dax fell by 0.69 percent to 18,164.06 points. The MDax mid-cap index lost 0.47 percent to 25,125.84 points. Losses were also recorded across Europe.

Fears of a particularly active hurricane season prevailed in the insurance industry across Europe. It was triggered by Hurricane Beryl, which hit the Caribbean and picked up speed and strength unusually early in the storm season and has already been upgraded to the highest category 5 of dangerous hurricanes. Reinsurers in particular were therefore faced with substantial claims costs. Munich Re and Hannover Re were therefore the weakest stocks in the German borrower's barometer, with losses of more than three percent each./ck/he