Equities displayed a modest performance on Wednesday, with the DAX index closing at 23,359 points – a gain of 0.1 percent compared to the previous day’s close. Market analysts attributed the subdued activity to disappointing figures released concerning US housing starts.
The US housing starts data revealed an 8.5 percent decline compared to the previous month, significantly lower than market expectations. This development underscores a potential weakening in a key pillar of the American economy, following concerns already raised about US consumer sentiment.
Analysts suggest the Federal Reserve is likely to factor this data into its interest rate decision scheduled for Wednesday, potentially mitigating the impact on the US real estate market. The broader health of the US economy continues to be under scrutiny.
Investor attention remains focused on the Federal Reserve’s upcoming policy announcement and, crucially, the commentary expected from Chairman Jerome Powell regarding the economic outlook.
The euro weakened slightly in afternoon trading, exchanging at $1.1848, with the dollar costing €0.8440.
Gold prices experienced a minor pullback, with the spot price for a fine ounce reaching $3,686 (-0.1 percent), equivalent to €100.03 per gram.
Crude oil prices also retreated, with a barrel of Brent North Sea crude trading at $68.05, marking a 42 cent or 0.6 percent decrease from the previous trading day’s close.