On Wednesday the DAX will be looking for direction. In addition to the balance sheet season, the focus will also be on the Fed interest rate decision in the middle of the week.
At the start of trading on Wednesday, the DAX recorded a small gain of 0.06 percent to 24,878.23 points. Afterwards it initially moved in a narrow range around the zero line. In the meantime, however, the sellers are getting their way.
The last DAX record
On January 13th, the DAX reached an all-time high of 25,507.79 points, exceeding the 25,500 point threshold for the first time in its history. Ultimately, it ended the day at 25,420.66 points, which was a new record based on the closing price.
Waiting for the Fed interest rate decision
During trading in the USA on Wednesday, the US Federal Reserve Bank in particular is likely to move prices with its interest rate decision. This is unlikely to lower its key interest rates further this Wednesday.
Focus on the independence of the US Federal Reserve
In view of the Financial markets But above all there is the fight for the independence of the Fed in the wake of the upcoming change in leadership. US President Donald Trump has been putting strong pressure on Fed Chairman Jerome Powell for months. The conflict recently escalated with the initiation of legal measures against Powell, whose term of office expires in May. Trump’s violent attacks and his calls for key interest rate cuts caused uncertainty in the financial markets. “The pause in interest rate cuts, which has been foreseeable for some time now, is a good opportunity for the Fed because it allows it to demonstrate its independence,” commented Commerzbank economist Bernd Weidensteiner.
Reporting season is in full swing
In Germany and the USA, the current week is dominated by the reporting season, which is now getting underway.
Editorial team finanzen.net / dpa-AFX / Dow Jones Newswires
