Handelsblatt editor Jürgen Röder explains the discrepancy between Fed and market expectations.
(Photo: dpa, Handelsblatt)
Dusseldorf How similar stock market history is. A drop in US inflation on Tuesday caused a price jump on the German stock market for the second time in five weeks: The sharp drop in October caused the leading German index Dax to jump by more than 550 points on November 11, 2022 and that was the end of the bear market this year. This is a term for a prolonged period of falling prices.
On Tuesday, the fall in the US rate to 7.1 percent instead of the expected 7.3 percent sent the Dax skyrocketing over 200 points before profit-taking began. Ultimately, it closed 1.3 percent up at 14,497 points.
The Frankfurt stock exchange barometer has thus ended a four-week sideways phase. Now the interest rate decision on Wednesday after the market close in Germany should be exciting. Is US Federal Reserve Chairman Jerome Powell giving investors hope that the hike cycle will end soon?
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