The prospect of key interest rates in the USA remaining high for the time being weighed on Wall Street the evening before and affected the German stock market on Thursday. The Dax fell by 0.40 percent to 16,836.74 points in the first minutes of trading. This means that the leading index is a little further away from the record high of a good 17,000 points. The MDax lost 0.54 percent to 25,819.59 points on Thursday morning. The EuroStoxx, the leading index for the euro zone, fell by around 0.6 percent.
The prospect of key interest rates in the USA remaining high for the time being weighed on Wall Street the evening before and affected the German stock market on Thursday. The Dax fell by 0.40 percent to 16,836.74 points in the first minutes of trading. This means that the leading index is a little further away from the record high of a good 17,000 points. The MDax lost 0.54 percent to 25,819.59 points on Thursday morning. The EuroStoxx, the leading index for the euro zone, fell by around 0.6 percent.
As expected, the US Federal Reserve left interest rates unchanged and made it clear that it was not yet ready to cut interest rates. One must first gain more confidence that inflation is moving sustainably towards two percent. Federal Reserve Chairman Jerome Powell said the Fed was prepared to maintain high interest rates for longer. Observers do not expect interest rates to be eased until after the next meeting in March at the earliest. So far it appears that the Fed has managed to slow down price increases without completely slowing down the economy.
Source: Stern
