The US inflation data for March put a damper on the German stock market. Inflation in the world’s largest economy was once again higher than expected. According to ING chief economist James Knightley, the chance of an interest rate cut by the US Federal Reserve in June has been destroyed. According to him, the earliest opportunity for easing US monetary policy will probably only come in September.
The US inflation data for March put a damper on the German stock market. Inflation in the world’s largest economy was once again higher than expected. According to ING chief economist James Knightley, the chance of an interest rate cut by the US Federal Reserve in June has been destroyed. According to him, the earliest opportunity for easing US monetary policy will probably only come in September.
The Dax, which gave up its early gains in the afternoon and slipped into the loss zone at times, ended the day with an increase of 0.11 percent to 18,097.30 points. The MDax of medium-sized stocks fell by 0.19 percent to 26,939.96 points. The picture was mixed across Europe, but the most important indices mostly closed close to the previous day’s close. The stock market in the USA was weak.
In March, price increases in the USA unexpectedly accelerated significantly. Consumer prices rose by 3.5 percent compared to the same month last year. The core inflation rate remained at its high level of 3.8 percent. “An increase in the US inflation rate was expected, but the extent of the monthly price increase is above expectations and so the doubts about the US Federal Reserve’s expected interest rate reduction path are growing,” the experts from Helaba also commented.
The hopes of investors on the stock exchanges are now focused on the European Central Bank (ECB), which will decide on the key interest rate in the euro region this Thursday. It is still expected to make its first interest rate move in June. In addition, the reporting season, which is about to start, is already coming into view and could provide new courage.
Source: Stern
