International exchanges
The central banks firmly grasp the market
The Federal Reserve (Fed) building in the capital Washington. Photo: J. Scott Applewhite / AP / dpa
© dpa-infocom GmbH
Will the Federal Reserve herald a rate turnaround in the coming week? It is not the only interest rate decision that market participants are eagerly awaiting.
The coming week of the stock exchange is entirely under the star of the central banks. The corona situation will only be marginalized temporarily.
There is one question that drives market participants in the interest rate decisions of the US Federal Reserve and the European Central Bank (ECB) in particular: Will the Federal Reserve herald a turnaround in interest rates at its meeting on Wednesday?
There is almost a consensus among observers that the Fed will curb the volume of its multi-billion dollar bond purchases even more than it was recently thought. This expectation was underpinned by new data on inflation in the US ahead of the weekend. In November the inflation rate rose to 6.8 percent, the highest level since 1982.
The fulminant cash injections by the monetary authorities have kept the stock boom alive for years. But interest rates in the US could soon rise. In addition to the Fed, the central banks in Great Britain and the European Central Bank (ECB) will also meet next week and announce their interest rate decision on Thursday. The Bank of Japan will follow on Friday.
Stock market recovered from its recent slump
Despite worries about future monetary policy, the local stock market had recently recovered from its most recent price slump. This was ensured by indications that the omicron variant of the coronavirus is highly contagious, but may not be as dangerous as initially assumed. And the vaccination booster should also withstand it. This gave the Dax strength again in the past week. A successful week ended with a moderate loss on Friday. At the end of trading, there was a minus of 0.10 percent to 15,623.31. After the Dax had risen sharply on the first two trading days of the week, its weekly gain was just under three percent.
To what extent the Omikron news in the run-up to Christmas has already dampened the shopping mood of consumers and the mood of companies, the purchasing manager indices from Europe on Thursday and the German Ifo business climate on Friday should provide information in the coming week. In addition, a large amount of further economic data is expected in the USA.
On the corporate side, however, there are signs of a fairly quiet week. In addition to the capital market day of the commercial kitchen supplier Rational on Monday, some closing balances are expected, including the final annual figures for the retailers Ceconomy (Tuesday) and Metro (Wednesday).