The DAX index continued to rise on Wednesday, with a moderate gain until midday. By 12:30 pm, the index was calculated at around 20,312 points, a 0.3% increase from the previous trading day. Leaders of the day’s price list included Commerzbank shares, with Zalando, Beiersdorf, and Symrise at the end.
Impulses on Wednesday are expected from the upcoming Federal Reserve interest rate decision, scheduled for the evening. “Recent US economic data paint a mixed picture. Strong retail sales are contrasted with a surprising decline in industrial production” commented Jochen Stanzl, Chief Market Analyst at CMC Markets. “Despite this, the Fed still has the option of a rate cut, accompanied by a cautious outlook for 2025, in which there may be few or no further rate cuts.”
Investors have already begun to price in a long rate pause from March to October, Stanzl noted. “This could quickly turn into an even longer pause today.”
On Wall Street, the lack of market breadth, however, is a problem. “80% of S&P 500 stocks fell in December. Capital is being shifted out of high-quality stocks and into speculative stocks from the Nasdaq 100, whose prices have already reached new highs” the analyst explained. “On the other hand, investors have started to question the impact of Trump on stock prices. The optimism about the effects of deregulation and tax cuts on growth and inflation may be misplaced.”
The euro was slightly stronger in the afternoon, with one euro costing 1.0499 US dollars and one dollar being worth 0.9525 euros.
Meanwhile, the oil price rose, with a barrel of Brent crude costing around $73.58 at 12 pm German time, a 39-cent or 0.5% increase from the previous trading day’s close.