The hope of falling interest rates in the euro region made it easier for the Dax to jump above 18,000 points on Thursday. ECB Governing Council member Yannis Stournaras called for interest rate cuts soon and considers two interest rate hikes before the summer break and four during the year to be “sensible,” as Stournaras, the head of the Greek central bank, told the Bloomberg news agency. Shortly after the stock market opened, the leading German index rose by 0.27 percent to 18,010.55 points. The index of medium-sized companies, the MDax, gained 0.16 percent to 26,393.45 points. The Eurozone leading index EuroStoxx 50 advanced by 0.39 percent to 5020.14 points.
The hope of falling interest rates in the euro region made it easier for the Dax to jump above 18,000 points on Thursday. ECB Governing Council member Yannis Stournaras called for interest rate cuts soon and considers two interest rate hikes before the summer break and four during the year to be “sensible,” as Stournaras, the head of the Greek central bank, told the Bloomberg news agency. Shortly after the stock market opened, the leading German index rose by 0.27 percent to 18,010.55 points. The index of medium-sized companies, the MDax, gained 0.16 percent to 26,393.45 points. The Eurozone leading index EuroStoxx 50 advanced by 0.39 percent to 5020.14 points.
It should also be exciting again on Friday, because that is the big expiry day on the futures exchanges. Options and futures on stocks and stock indices are expiring, which could cause a lot of movement in the Dax above 18,000 points. In the past, such dates were often decisive turning points for the market.
Otherwise, market participants are already waiting for the US Federal Reserve’s next interest rate meeting next Wednesday. Some further US economic data this Thursday could provide information about the Fed’s scope for soon-hoped-for interest rate cuts, including retail sales and producer prices. In this country, however, the reporting season continues.
Source: Stern
