The DAX started the session down 0.24 percent at 15,077.32 points. However, new signs of easing in the conflict between Russia and Ukraine gave impetus to trading and ultimately sent the DAX up 1.98 percent to 15,412.71 points.
According to the Russian Ministry of Defense, Russia is withdrawing troops in the south and west to the barracks after maneuvers. On the stock market, investors reacted with relief. Analyst Craig Erlam from broker Oanda spoke of a big step in the right direction.
The international diplomatic cogs continued to turn at full speed and tried to ease the situation in the Ukraine conflict, from which the DAX is benefiting, explained market observer Andreas Lipkow from the online broker comdirect. With a view to Moscow’s further steps, however, increased caution is required, investors are reacting sensitively to the geopolitical situation, wrote analyst Susannah Streeter from the financial services provider Hargreaves Landsdown.
The economic expectations of German financial experts brightened again in February, as the mood barometer of the Mannheim research institute ZEW showed. However, analysts had expected an even friendlier development. “Market participants are hoping that the corona restrictions will soon be relaxed and the economic prospects will improve,” commented Helaba. Although the Ukraine conflict is causing uncertainty, the pressure on the European Central Bank (ECB) to gradually move away from its extremely loose monetary policy is increasing.
The US Federal Reserve has already done so. Many market observers are now even anticipating a 0.50 percentage point hike in the US key interest rate in March. In addition to the geopolitical risks, the Fed’s tougher stance to fight inflation remains one of the key drags on the stock market. At the producer level, inflation in January increased again more significantly than economists had expected, as new data has shown. Minutes of the most recent US Federal Reserve meeting will be released on Wednesday. It should continue to give investors clues as to the monetary tightening stance.
Editorial office finanzen.net / dpa-AFX
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