After a mixed start to the new stock market year, negative signs were seen in share prices on Wednesday.
The DAX rose marginally at the start of Wednesday on the Frankfurt Stock Exchange and initially continued to hover in a narrow range around the zero line. Then the downward pressure became too great and the leading German index fell deep into the red. Ultimately, the DAX lost 1.38 percent to 16,538.39 points.
The price losses on the US technology exchange Nasdaq proved to be particularly damaging, where the NASDAQ 100 index had slipped to its lowest level since mid-December the evening before.
Investors not very willing to take risks
Analysts said investors doubted that prices would continue to rise sharply after recent gains. “Many are expecting a slowdown and it is admittedly difficult to argue against these expectations,” said Jochen Stanzl, chief analyst at broker CMC Markets. However, he appeared calm. “At the moment, the technical chart signals give no indication that a correction is imminent. Patience is required.”
“Obviously investors are not too willing to take risks at the start of the year. The majority are apparently trying to get into the market at cheaper prices,” wrote analyst Thomas Altmann this morning, referring to the weakness of US tech stocks. The start of 2024 on Wall Street “went really wrong”.
Fed minutes in focus in the evening
After the stock market closes in this country, the minutes of the US Federal Reserve’s most recent interest rate meeting could be worth a look in the evening. At the meeting in mid-December, the Fed announced interest rate cuts. Many observers are already expecting lower key interest rates for the meeting in March. The markets will therefore look at the wording of the protocol for clues about the future monetary policy analyze.
The decisive factor for the development of the stock markets in the new year will likely be how quickly the leading central banks meet the high expectations and loosen their monetary policy again after the recent marathon of interest rate hikes.
Editorial team finanzen.net / dpa-AFX / Reuters