Börse Aktuell – Hardly any arguments to buy shares – stalemate – DAX 40: Investors exercise caution

Yesterday, Shrove Monday and without any impetus from Wall Street being closed for the holiday, there wasn’t much going on on the Frankfurt stock exchange floor. The DAX has been running very narrowly for weeks.

The reason for investors’ wait-and-see attitude is the current fear of interest rates. As a result of rising yields on the US bond market, there are hardly any arguments to buy equities. However, market participants do not seem to want to sell their dividend stocks either. So there is a stalemate.

Market participants expect a higher key interest rate

Just a few weeks ago, market participants in the USA were expecting the key interest rate to be 5.0%. Market traders have become a little more pessimistic in this regard since the Federal Reserve’s recent statements. According to the CME Group, investors are now assuming that the key interest rate will be up to 5.5% this year.

It could now take some time for the higher interest rate expectations to be priced in. The recent development has pushed the yield of ten-year US bondsgovernment bonds driven upwards. The dollar was able to benefit from this. Stocks are suffering at the moment raw materials.

DAX 40 – Investors exercise caution

The current uncertainty is in the daily chart of the DAX to see. The leading German index has been moving in a very narrow trading range since the beginning of February. The recent high of 15,553 points should be broken for further upside. The lower limit of the trading zone is 15,272 points. This is the former top of the previous price range.

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