Paralyzed DAX Ahead of Rate Decision: "Dead Calm" on the German Stock Exchange
Monday's gains are already history: the DAX closed Tuesday with a slight loss of 0.12 percent at 24,278.36 points. Ahead of the eagerly anticipated interest rate decisions by the Fed and the ECB, investors are exercising extreme restraint. The DAX is treading water, and the direction in which the pendulum will swing is completely unclear.
In comparison, the German stock index is currently being slightly left behind: while US indices also failed to make significant jumps, their growth shows a consistently upward trend. Even the positive news that Nvidia is building a multi-billion euro AI data center in Germany, to which SAP will have access, could barely stir the DAX. Caution appears to outweigh risk for DAX participants at the moment.
Symrise and Deutsche Börse Disappoint with Quarterly Figures
Fundamentally, attention is focused on the monetary policy insights from the Federal Reserve this evening and the European Central Bank's decision on Thursday. Among individual stocks, quarterly reports led to disillusionment: shares of Symrise and Deutsche Börse disappointed with their financial results and closed significantly lower. Symrise lost a steep 4.5 percent, while the shares of the exchange operator fell by 1.7 percent.
Fed Minutes Tonight: DAX's Patience Test Ends with "Go Big or Go Home"
The wait-and-see attitude in the DAX is turning into a real test of patience on Wednesday. Everyone is waiting for the Federal Reserve's decision, expected at 7 PM Central European Time. Although the market considers the rate cut to be a done deal (almost 100% priced in), the focus is on the subsequent press conference. This will provide clarity on the future of US monetary policy.
From a chart perspective, the situation remains unchanged: the DAX is waiting in its trading range for the decisive impulse. The trading day could consequently end with a "go big or go home" moment.
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