On Thursday, the German stock market maintained its significant gains from the previous day. “US producer prices today confirmed the slowdown in inflation momentum,” commented market analyst Konstantin Oldenburger of CMC Markets, following the release of 8.5 percent slowing inflation in the US on Wednesday.
On Thursday, the German stock market maintained its significant gains from the previous day. “US producer prices today confirmed the slowdown in inflation momentum,” commented market analyst Konstantin Oldenburger of CMC Markets, following the release of 8.5 percent slowing inflation in the US on Wednesday.
The markets see this as an opportunity that the US Federal Reserve (Fed) could make its rate hikes a little less aggressive. “But whether we are actually on the very long way back to the Fed’s inflation target of two percent remains speculative for the time being,” warns Oldenburger.
The Dax was stable with minus 0.05 percent to 13,694.51 points and is thus on the way back towards 14,000 points. The MDax for medium-sized companies gained 0.28 percent to 27,896.16 points. Across Europe, the stock exchanges also changed only slightly.
In the US, producer price inflation weakened more than expected in July. Producer prices increased by 9.8 percent in July compared to the same month last year. Economists had expected an average of 10.4 percent. In June, the rate was still 11.3 percent. On Wednesday it had already become apparent that US consumer prices in July had not risen as much as forecast.
Source: Stern
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
