“The air gets thin above 16,000 points”

Dusseldorf The German stock market is back in reverse. The Dax was trading at 15,735 points in the afternoon, down 0.5 percent.

The stock market barometer was able to benefit from the interest rate decision by the ECB. As expected, the central bankers increased interest rates by 25 basis points. The Dax gave way in the run-up to the interest rate decision and slipped to 15,662 points. This was a retest of the short-term resistance area between 15,700 and 15,600 points. After the interest rate decision, however, the Dax went back on a recovery course.

Michael Heise, chief economist at HQ Trust, sees the 25 basis point hike as a “reasonable step in interest rates despite the currently increased risks for the economy and financial market development”. He considers “a further interest rate hike step to be likely as early as June, since the pressure on wage costs has increased and companies have the scope to increase prices, and significant price increases are to be expected, especially in the service sector.”