On Wednesday, the Dax index corrected itself. At the Eurex closing, the index was calculated at 21,637.53 points, a plus of 0.97 percent compared to the previous day’s closing. The Dax had briefly reached a new all-time high of 21,671.59 points earlier in the day.
“After the stock market world focused almost exclusively on artificial intelligence in the past three days, the focus of investors is now on the monetary policy committee of the US Federal Reserve this evening” commented market analyst Konstantin Oldenburger of CMC Markets on the development.
“It was already clear at the December meeting that the Fed is likely not to lower interest rates as freely this year as it did in the past. This stance has since been reinforced by various data and indicators” Oldenburger said. “The US economy has started the year 2025 with a lot of momentum, the labor market, which was briefly wobbly, seems to have stabilized and inflation remains above the two percent target. Therefore, the Fed is likely to neither lower interest rates today nor in March” he predicted.
On the other hand, the new US President Trump wants low interest rates and has already called on the Fed to lower them slowly but steadily. “Since the election in November, Fed Chairman Jerome Powell has repeatedly stated that the Fed will react to economic data, not to the promises of political parties. The pressure on the Fed Chairman will therefore remain high, so that he could still not rule out a rate cut in March, which would initially be positive for the stock market” said the expert.
“In the Dax, this could be the start of a further rally towards 22,000 points after the all-time high reached today, which was preceded by the sell-off of KI stocks on Monday. If the major technology companies then also report good quarterly results, the shock from the week’s start would be forgotten for good” Oldenburger said.
At the top of the price list, Daimler Truck papers were found with an increase of over seven percent, while Qiagen shares were at the bottom with a decline of over five percent, followed by Continental and Infineon.
The European common currency was slightly weaker in the afternoon: one euro cost 1.0416 US dollars and one dollar was worth 0.9601 euros.
The gold price showed a weakening, with a price of 2,753 US dollars per fine ounce (-0.4 percent) in the afternoon, equivalent to 84.97 euros per gram.
The oil price, on the other hand, fell: a barrel of the Brent North Sea type cost 77.08 US dollars at 5 pm German time, a decrease of 41 cents or 0.5 percent compared to the previous day’s closing.