Financial expert analyzes: Powell pulls the plug on the DAX - how do the markets react?

Financial expert analyzes: Powell pulls the plug on the DAX - how do the markets react?

According to a report by www.n-tv.de,

The DAX continues to post gains and is heading for its second consecutive week of gains after previously posting six consecutive weeks of losses. However, Wall Street closed lighter after Federal Reserve Chairman Jerome Powell made monetary policy statements that unsettled investors.

Powell stressed that rate hikes remain an option and that monetary policy could be tightened further if appropriate. These statements have raised concerns among investors about a more restrictive monetary policy. However, Powell also made it clear that the days of rapid interest rate hikes were over and that the central bank would act cautiously.

This development has an impact on the market. Investors are sensitive to hints of tighter monetary policy, and the uncertainty caused by Powell's statements could lead to volatile stock prices. It is important to keep a close eye on the evolution of the Fed's monetary policy as it can have a direct impact on capital markets and the financial industry.

In addition, UK third quarter gross domestic product (GDP) figures are expected to be published this week. Experts assume a minus of 0.1 percent, which is due to the still high inflation and the sharp rise in key interest rates. The economic outlook is less than rosy, with Bank of England forecasts pointing to stagnation in 2024 and low growth in 2025.

These economic developments could also have an impact on capital markets, particularly on companies that are heavily dependent on the UK market. It is important to closely monitor developments in the UK to consider any potential impact on investment decisions.