The DAX index commenced trading on Wednesday with minor losses. Around 9:30 AM, the leading index was recorded at approximately 24,185 points, representing a decrease of 0.1 percent compared to the previous day’s closing level. Porsche, Siemens Healthineers and BASF led the performance on the upside, while Adidas, Symrise and Hannover Rück were among the underperformers.
The focus of the trading day is the upcoming decision by the US Federal Reserve regarding interest rates, scheduled for later today. According to Thomas Altmann of QC Partners, a change in the US key interest rate is deemed unlikely. Attention will be centered on how Federal Reserve Chair Jerome Powell assesses the impact of recent trade deals on the inflation rate during the accompanying press conference.
Market sentiment currently leans towards a potential interest rate reduction in October. Observers note that the remaining number of policy meetings under Jerome Powell’s leadership as Federal Reserve chair is dwindling, with only seven remaining including today’s session.
Altmann suggests the DAX appears to be trading within a defined range. For roughly three weeks, the index has been moving sideways between approximately 23,900 and 24,500 points. “It seems as though no one is currently eager to significantly shift their positions” he commented, indicating a palpable apprehension among investors to risk being positioned incorrectly. Despite the sustained high price levels, activity in put options remains notably low. The market expert cautions that this reduced level of hedging represents a significant potential risk for future market performance.