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Fed statements weigh on Dax
Current losses on the Frankfurt stock exchange due to uncertain interest rate scenarios. Dax closes 1.24% lower. Insights into the effects on the German stock market.
Fed statements weigh on Dax
The uncertainty surrounding a possible lack of interest rate cuts by the US Federal Reserve this year weighed heavily on the German stock market. The US government's robust jobs report further served to reinforce these concerns. The Dax ended the day with a decline of 1.24 percent to 18,175.04 points. Experts such as Thomas Gitzel from VP Bank emphasized the ongoing series of good labor market data in the USA. On the one hand, this is positive because the US economy is self-sustaining, but on the other hand it represents a dilemma for the Fed because the need for interest rate cuts is being questioned.
The leading index DAX suffered a weekly loss of 1.72 percent, which represents the first negative performance after eight consecutive weeks of gains. The MDax of medium-sized stocks also recorded a decline of 1.29 percent to 26,915.13 points. The trading day already began with noticeable losses due to the decline on the New York stock exchanges. Comments from the president of the Minneapolis regional Federal Reserve triggered these downward trends on interest rate concerns, which eventually spilled over into Europe. Fed non-voting member Neel Kashkari's statement that there may be no rate cuts if inflation and robust economic growth are present contributed to this development.
Adjusted to the overall clouded mood on the German stock market, there were almost exclusively losers in the Dax. Only the shares of the Deutsche Börse were able to record an increase of 0.6 percent at the top of the index, as they benefit from increased trading turnover in turbulent times. The leading European indices, such as the EuroStoxx 50, the French Cac 40 and the British FTSE 100, also recorded losses of around one percent each. On the other hand, the New York Dow Jones Industrial rose by 0.9 percent at the close of trading in Europe.
Furthermore, the euro fell and the European Central Bank set the reference rate at 1.0841 US dollars. This corresponds to a decrease compared to the previous day. 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 to 125.23 points. The Bund future, however, lost 0.60 percent to 132.2 points.