The Dax came under pressure on Friday. Statements by the president of the regional US Federal Reserve Bank in Minneapolis had sparked concerns on Wall Street the evening before that there would be no interest rate cuts this year.
The Dax came under pressure on Friday. Statements by the president of the regional US Federal Reserve Bank in Minneapolis had sparked concerns on Wall Street the evening before that there would be no interest rate cuts this year.
Fed member Neel Kashkari, currently a non-voting member, had said there might not be a rate hike in 2024 if inflation remained high and growth remained robust. This led to significant losses on Wall Street on Thursday. Against this background, the labor market report from the USA in the afternoon will likely be examined more closely.
Shortly after the start, the leading German index lost 1.18 percent to 18,186 points. The 21-day line, which signals the short-term trend, is currently still forming resistance. It is currently running at around 18,100 points. The MDax fell by 1.22 percent to 26,935 points on Friday morning. The EuroStoxx 50, the leading index for the Euro region, lost 1.18 percent to 5,011 points.
The fact that a Fed banker emphasizes the importance of fighting inflation is only somewhat surprising. However, the majority of market participants still expect the first key interest rate cut in the summer. All the more attention will now turn to the US government’s labor market data for March. Investors are hoping to draw conclusions about the timing of the first key interest rate cut in the USA. This is how a strong labor market can drive inflation.
Source: Stern
