The DAX opened weak early in German trading on Thursday morning. At about 9:30 a.m., the index was quoted around 24,710 points-0.4 % below the previous day’s close.
SAP’s shares were hit hardest, falling by double‑digit percentages after a period of strong revenue and profit growth. The company ultimately missed its own targets for cloud‑product order intake.
Investor attention was drawn to recent remarks from the U.S. Federal Reserve. “The Fed stresses labor‑market risks far less than it did in December and highlights an improved growth outlook” said Eckhard Schulte, chief executive of MainSky Asset Management. He added, “The signal is clear: no rate cuts in March or April, and Jerome Powell shows no intention of accommodating the already strained relationship with the U.S. president”.
Fed voting dynamics added tension. Christopher Waller, a favorite to succeed Powell, and rate‑cut advocate Stephen Mirin both voted for lower rates. Whether Waller’s vote was a strategic move to boost his chances for the chair remains speculative. After the vote was announced, Waller’s market probability on Polymarket jumped from 8 % to 15 %.
The Fed has chosen not to comment on the recent dollar’s weakness, following standard policy that treats the currency as a by‑product rather than a target. Treasury Secretary Scott Bessent voiced verbal support for the dollar after President Trump praised its recent decline. The anticipated nomination of a new Fed president next week is expected to put additional pressure on the U.S. currency, as the debate over the central bank’s political independence is likely to gain prominence.
On the currency front, the euro was marginally stronger on Thursday morning: one euro exchanged for 1.1975 U.S. dollars, and one U.S. dollar was worth 0.8351 euros. Gold prices climbed sharply, with one fine ounce trading at $5,519-up 1.9 %-equivalent to €148.18 per gram. Brent crude oil advanced, trading at $69.32 per barrel at 9 a.m. German time, which was $0.92 (1.4 %) more than its prior‑day close.