US inflation data sends DAX into decline - Fed interest rate cut not until March?

US inflation data sends DAX into decline - Fed interest rate cut not until March?

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

The DAX closed with a loss of 0.9 percent and reached 16,547 points. US inflation data showing lower core inflation raised concerns about whether the Federal Reserve will actually ease monetary policy. This led to losses in the markets.

Reduced inflation growth in the US to 3.9 percent in December compared to the expected 3.8 percent could indicate that the Federal Reserve's hoped-for easing of monetary policy is being postponed. Many experts do not expect monetary policy to be relaxed until the second half of the year. This could lead to continued uncertainty in the markets as investors are uncertain about future economic developments.

China is also expected to release its foreign trade figures in December, with exports expected to have increased by 1.7 percent and imports by 0.3 percent. Weak global demand and the real estate crisis continue to put pressure on the Chinese economy.

In addition, several major US banks such as JP Morgan, Blackrock, Bank of America and Wells Fargo are opening their books and thus beginning the reporting season. The publication of these financial results could also provide new impetus for the markets.

Overall, these developments point to potential market volatility as investors react to clues about the US Federal Reserve's future monetary policy and the impact of China's foreign trade, as well as the results of major US banks.