Surprisingly high US consumer prices had a noticeable impact on the German stock market on Tuesday. The leading index DAX lost 0.92 percent to 16,880.83 points. The MDax of medium-sized stocks even fell by 1.42 percent to 25,724.51 points.
Surprisingly high US consumer prices had a noticeable impact on the German stock market on Tuesday. The leading index DAX lost 0.92 percent to 16,880.83 points. The MDax of medium-sized stocks even fell by 1.42 percent to 25,724.51 points.
Capital market strategist Jürgen Molnar from the trading house Robomarkets had previously warned that the inflation data could move the market significantly as it was a decisive factor for the US Federal Reserve’s monetary policy direction.
Although inflation weakened in January, it only fell to 3.1 percent instead of the expected 2.9 percent. Hopes for rapid and significant interest rate cuts received a further blow with these data. However, US central bankers had recently dampened overly high expectations with reference to the uncertain development of inflation.
Only more clarity about future macroeconomic trends should allow the Fed to cut key interest rates in the future, wrote Tobias Basse from Landesbank NordLB.
Source: Stern
