30 am, a 0..2 percent increase from the previous day’s close.
Jochen Stanzl, chief market analyst at CMC Markets, noted that the trading range for the DAX is narrowing in anticipation of key US labor market data. “The figures, scheduled for release today at 2:30 pm due to a holiday, will be crucial in assessing the path of interest rate adjustments by the US Federal Reserve” Stanzl stated. “With two more reports pending before the expected September rate cut, the overall trend is likely to be more influential than any single data point.
The analyst further commented that even weak labor market data could lead the Fed to delay a rate cut until September, despite Jerome Powell’s previous openness to a July reduction during the Sintra conference. “The central bank is determined to avoid any perception of succumbing to pressure from the US President for rapid rate cuts” Stanzl explained. “Independence is paramount for the central bank and if the data doesn’t provide a clear signal, ironically, President Trump might be the one to prevent an earlier rate cut.
Beyond monetary policy, trade policy remains a significant focus for investors. Sentiment is cautiously optimistic as investors await solutions, preventing the DAX from experiencing a sharper decline. Wall Street is currently trading near record highs. However, a sustained rise above the 24,000-point mark for the DAX hinges on clarity regarding the specific terms of agreements between the EU and the US. Until then, skepticism prevails.
A definitive assessment of global trade is currently challenging due to a lack of detailed information. While President Trump has reached agreements with Vietnam, the UK and China, 54 countries still face high reciprocal tariffs exceeding the baseline 10 percent, effective July 9th. This leaves a tight seven-day window to announce approximately eight trade agreements daily. Should the US government fall behind this schedule, investor patience could be tested.
In currency markets, the euro showed slight strength on Thursday morning, trading at $1.1804, with one US dollar equating to 0.8472 euros.