Frankfurt's stock market - Anticipated monetary policy updates from the U.S. triggering losses in the DAX.
The EuroStoxx 50, a major index for the Eurozone, experienced a 1% drop. The British FTSE 100 also took a hit, losing almost as much, while the French Cac 40 slid deeper into the negatives. On the New York Stock Exchange, the Dow Jones Industrial edged out its loss to 0.6% by the end of European trading, with the tech-heavy Nasdaq 100 managing to counterbalance its losses.
The US Federal Reserve (Fed) is expected to maintain its benchmark interest rate during their meeting on Wednesday night. However, the ensuing statement and subsequent speech from Fed Chairman Jerome Powell could shed light on future interest rate policy. Preceding this, consumer price data is slated for release on Wednesday, potentially revealing when the first interest rate cut in the US since the huge inflation episode will occur.
French bank stocks were once again affected by the politically volatile situation across the Rhine. In the DAX, Commerzbank and Deutsche Bank incurred losses of over 3% each. In contrast, Covestro, a German plastics company, led the DAX with a 7.1% gain and reached its highest point since nearly two months. Rumors of progress in takeover discussions between Covestro and Adnoc, an Emirati state oil company, were the reason behind this upswing.
Attention from investors in printing machine manufacturers centered on the aftermath of the Drupa trade fair. Koenig & Bauer mentioned a favorable order intake, while Heidelberger Druck recovered its own order intake after receiving many orders at the event. Nonetheless, the shares of Koenig & Bauer only inched up 0.7%, reflecting their prior peak since mid-September. Heidelberger Druck, meanwhile, soared as one of the biggest gainers in the secondary index SDax by 3.8%. Conversely, Hapag-Lloyd shares fell 9% in the wake of significant losses amongst major Asian shipping companies.
The euro went down to 1.0734 USD. The European Central Bank (ECB) had previously pegged the reference rate at 1.0730 USD, leading to a cost of 0.9319 euros per dollar. In the bond market, the yield on the 2.70% from the day before climbed to 2.71%. The bond index Rex slipped by 0.05% to 123.38 points. The Bund future, meanwhile, went up by 0.39% to 130.16 ticker.
Read also:
The anticipation of the Federal Reserve System's monetary policy updates led to losses in MDAX, Frankfurt's tech-focused stock index, aligning with the broader DAX trends. The Dow Jones Index in the USA felt the impact but managed to limit its loss, while the NASDAQ-100 showed some resilience. Meanwhile, the European elections added an layer of Uncertainty to the Eurozone stock exchanges, causing the CAC 40, Dow Jones Index, DAX, FTSE 100, and Euro Stoxx 50 to experience fluctuations.
The expected interest rate maintenance by the US Federal Reserve (Fed) had potential implications for Germany's stock market, impacting companies like Commerzbank and Deutsche Bank in the DAX. On the other hand, positive news about takeover discussions between Covestro and an Emirati state oil company boosted the shares of Covestro in the DAX, leading it to its highest point in nearly two months.
In the midst of all this, the value of the euro went down to 1.0734 USD, while the yield on the 2.70% German Bund went up to 2.71%, revealing shifts in the bond market. The matter of European elections, unfolding policy updates from the Federal Reserve System, and fluctuations in the global stock exchanges added another layer of Uncertainty, particularly for investors in the USA, as well as the NASDAQ-100 and FTSE 100.
