Despite Fed and China Deal: DAX Unimpressed – Concerns Weigh More Heavily
The expected interest rate cut by the US Federal Reserve occurred—but the anticipated fireworks in the stock market failed to materialize. On the contrary: US markets initially slipped into the red. Jerome Powell dampened the overly bullish expectations during the subsequent press conference, questioning a further rate cut in December, citing stubbornly high inflation and rising unemployment. This neutralized the joy over the rate cut.
The DAX traded flat during the day and was barely influenced by the Fed's decision in after-hours trading. The trading day ended with a loss of 0.64 percent at 24,124.21 points. Today, Thursday, investors not only face the ECB decision but also the breakthrough in US-China negotiations, which should actually provide positive impulses. However, this is countered by the massive billion-dollar losses at Volkswagen, which are weighing on general sentiment.
Adidas Collapses: US Business Slumps – Deutsche Bank Rises
Divergence dominated among individual stocks. Deutsche Bank stock shone with a daily gain of 4.9 percent, securing the top position. Daimler followed closely with a 4.3 percent gain. However, investors in Adidas stock experienced the biggest shock, with shares collapsing by a hefty 10.4 percent. Although Adidas is better equipped to handle US tariffs, market participants reacted extremely sensitively to the caution in orders from US retailers.
DAX Before Final Decision: Is the ECB the Decisive Factor?
The technical outlook for the DAX is intensifying. As long as the index fails to sustainably overcome the resistance at around 24,400 points, fears of a correction grow. A renewed dive below the psychologically important 24,000-point mark is becoming increasingly likely. Today's ECB decision could be the crucial factor, either providing the necessary impetus for a breakout or definitively giving way to the bears.
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