Leading index starts trading with great uncertainty

Frankfurt The Dax starts Thursday trading cautiously. He is at 12,180 points and thus practically unchanged compared to the previous day’s close. Measured against the top in January, the leading German index is more than 4,000 points or around 25 percent lower, but only slightly above the low of just under 12,000 points reached at the end of September.

Traders attribute the cautious start to trading to afternoon US inflation and jobs data. High inflation could lead to expectations of a fourth consecutive interest rate hike at the next central bank meeting in early November.

On Wednesday, investors were again warned by current data. “American producer prices rose more than expected in September,” says Metzler Capital Markets. The analysts’ verdict: “Of course, this can be taken as an indication that it could be some time before inflationary pressure eases across the board and the US Federal Reserve deviates from its aggressive rate hike course.”