Dusseldorf The leading German index is taking a break on Thursday. In the first hour of trading, the Dax was down 0.8 percent at 15,770 points. “After the series of highs for the year, the momentum has been lost,” says Thomas Altmann from QC Partners. “The impulses from the reporting season are currently not sufficient to carry the Dax further up.”
However, the psychologically important mark of 16,000 points remains within reach. On Wednesday, the Dax closed 0.1 percent up at 15,895 points – just 21 points below the previous high for the year.
Historically, however, a breakout above 16,000 points has not been sustainable so far. The leading German index did not end a trading month above this level. If that were to change, it would be a surprise.
The Federal Statistical Office published the German producer prices for March even before trading began. Accordingly, prices have risen by 7.5 percent compared to the same month last year, in February it was still 15.8 percent. It was the sixth straight decline.
The development is an indication “that the inflationary pressure is decreasing significantly and rapidly,” said the scientific director of the Institute for Macroeconomics and Business Cycle Research (IMK), Sebastian Dullien. Producer prices are considered an important leading indicator for the further development of inflation, which in turn is decisive for the monetary policy of the ECB.
Further economic signals will come from the USA on Thursday: The weekly initial jobless claims will be published here, and four high-ranking US central bankers will also comment. Investors are hoping for clues about the future course of monetary policy.
The US Federal Reserve published its “Beige Book” economic report on Wednesday. Accordingly, US economic activity has changed little in recent weeks, and expectations for future growth have also remained largely unchanged.
Mixed corporate balance sheets and concerns about future monetary policy also dampened sentiment on Wall Street on Wednesday, with the indices barely changing at the end. Investors in Asia are also holding back on Thursday.
Look at the euro and oil
Oil prices fell further in early trading on Thursday. In the morning, a barrel (159 liters) of North Sea Brent for delivery in June cost 82.17 US dollars. That was 95 cents less than the day before. The price of a barrel of American West Texas Intermediate (WTI) grade for delivery in May fell 87 cents to $78.29.
The euro was also stable below the US$1.10 mark on Thursday morning. The common currency was trading at $1.0960 in early trade, about the same as the previous day. The one-year high of just over $1.10, marked late last week, remains within reach.
Look at individual values
Sartorious: The laboratory equipment supplier recorded a 22.1 percent decline in Ebitda to EUR 272 million for the first quarter. Nevertheless, the group confirmed its forecast for the year. “The basic growth drivers in our markets are still positive, which has been shown for many years by our robust double-digit growth rates, regardless of special effects,” says CEO Joachim Kreuzburg. The papers fall by 9.9 percent.
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