The Dax slipped decisively into negative territory on Wednesday after starting the day on a friendly note. At the close of Xetra trading it stood at 23 502 points, a drop of 1.0 % from the previous day.
Investors were particularly tuned in to the Federal Reserve’s policy meeting, where the interest‑rate decision will be released in the evening (German time). Although no change in rates is expected today, market participants are wary that the outlook could bring unwelcome news. Indeed, overseas markets fell sharply at the opening, reflecting expectations that U.S. producer prices are rising faster than anticipated and that higher energy costs may soon feed through to inflation. “The economy is stagnating while prices rise-a scenario that offers little room for rate cuts” said Andreas Lipkow of CMC Markets.
Against that backdrop, the Dax managed to stay in the green for the day thanks to the performance of Commerzbank’s shares. On the second day after Unicredit’s takeover offer, investors appear to be more focused on a disciplined follow‑through of the Italian bank’s plan than on the modest premium over the current share price. They view the offer as a tentative gauge of approval, after which Unicredit could adopt a much more aggressive approach. Lipkow noted that “a political blockade stance could give way to a sufficient premium package” in this context.
In the foreign‑exchange market, the euro weakened on Wednesday afternoon: €1 was worth US$1.1511, while US$1 traded at €0.8687.