Uncertainty about a possible lack of interest rate cuts by the US Federal Reserve this year also weighed on the German stock market on Friday. The US government’s robust labor market report in the afternoon did its part to support this thesis. The Dax ultimately fell by 1.24 percent to 18,175.04 points.
Uncertainty about a possible lack of interest rate cuts by the US Federal Reserve this year also weighed on the German stock market on Friday. The US government’s robust labor market report in the afternoon did its part to support this thesis. The Dax ultimately fell by 1.24 percent to 18,175.04 points.
The series of good labor market data is not stopping, said chief economist Thomas Gitzel from VP Bank. On the one hand, this is positive because the US economy is self-sustaining. On the other hand, the good data is also a problem for the Fed, because the question is increasingly arising as to whether interest rate cuts are even necessary. This is not yet the main scenario for market participants, but according to Gitzel, the debate about it is likely to intensify.
Over the week, the leading index Dax lost 1.72 percent; It is the first weekly loss after eight positive weeks in a row. The MDax of medium-sized stocks lost 1.29 percent to 26,915.13 points on Friday.
The German stock market had already started the day with noticeable losses after the New York stock exchanges slipped on Thursday. The price losses in the USA were triggered by statements made by the President of the regional US Federal Reserve Bank in Minneapolis. These triggered interest rate concerns on Wall Street, which eventually spilled over into Europe. Fed member Neel Kashkari, currently a non-voting member, had said there might not be a rate cut this year if inflation remained high and growth remained robust.
Source: Stern
