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Dax burdened: uncertainty caused by Fed interest rate policy
Uncertainty about interest rate cuts by the US Federal Reserve is weighing on the German stock market in Frankfurt. Learn more about the losses and impacts. #Stockmarket #Economy #Frankfurt #Dax
Dax burdened: uncertainty caused by Fed interest rate policy
Uncertainty about a possible lack of interest rate cuts by the US Federal Reserve this year weighed on the German stock market. The US government's robust jobs report reinforced these concerns. The Dax lost 1.24 percent and closed at 18,175.04 points.
Experts such as chief economist Thomas Gitzel from VP Bank emphasized that the series of good labor market data was positive for the US economy. But the question of the need for interest rate cuts is becoming more and more central. This could lead to intense discussions, even if it is not the main topic of market participants at the moment.
This week the Dax recorded a loss of 1.72 percent, which is the first weekly loss after eight consecutive weeks of gains. The MDax of medium-sized stocks also lost 1.29 percent and closed at 26,915.13 points.
The day began with significant losses on the German stock market after the New York stock exchanges fell. Statements by the President of the regional US Federal Reserve Bank in Minneapolis caused concerns about interest rates that also spread to Europe. Current non-voting Fed member Neel Kashkari said there may be no rate cut this year if inflation remains high and growth remains robust.
Overall, there were almost exclusively losers in the Dax due to the subdued mood. However, Deutsche Börse shares still gained 0.6 percent as they benefit from turbulent times on the stock markets as trading volumes are high.
The European leading indices also moved downwards. The EuroStoxx 50, the Cac 40 and the FTSE 100 each lost around one percent. However, the Dow Jones Industrial rose 0.9 percent at the close of trading in Europe.
The euro fell against the dollar. The European Central Bank set the reference rate at $1.0841. On the bond market, the current yield fell from 2.41 percent to 2.40 percent, while the Rex bond index rose by 0.04 percent. The Bund future fell by 0.60 percent to 132.2 points.