
The leading German index closed with a loss of 1.3 percent, while investors looked at the central bank's minutes.
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The Dax is currently trading above the 200-day line at 24,847 points. In September, the central bank raised the key interest rate for the first time in three years.
Dusseldorf. The recovery on the German stock market took a break this Wednesday. The leading German index ended trading with a loss of 1.3 percent at 25,104 points. A day earlier, investors were more optimistic. The leading index closed on Tuesday around 0.8 percent above the previous day's level at 25,499 points.
The Dax has only ended one trading day in the red in October, as data from LSEG shows. The leading index is currently trading above the 200-day line. This represents the average of the period and represents the long-term trend. The line currently runs at 24,847 points.
On Wednesday evening, the central bank will publish the meeting minutes after the German trading close. Investors hope to gain insight into the monetary authorities' internal discussions about the future course. Market participants are currently pricing in another interest rate hike this year. In September, the central bank raised the key interest rate for the first time in around three years. It is now in a range of 3.75 to 4.0 percent.
Overall, investors in the German stock market are currently finding it difficult to make bold investments in German stocks, notes Jochen Stanzl, chief analyst at Consorsbank. “While Wall Street is celebrating new records, investors in Germany are unfamiliar with the concept of a year-end rally – the devaluation of the euro and political worries are eating away at their confidence.”
The Nasdaq technology exchange index and the broad S&P 500 index reached records on Tuesday. An extensive stabilization in the oil and bond markets ensured the rising prices on the stock markets. However, US Treasury yields rose again on Wednesday after the previous day's decline.
This brought some calm to the bond market after the growing national debt and political uncertainty in France had recently caused yields to rise sharply and in turn had weighed on the European stock market.
In addition, oil prices were more stable yesterday, Tuesday. However, experts urged caution as the price of North Sea Brent crude oil continued to hover around the $100 mark. The price rose again on Wednesday - and rose above the mark for a barrel (159 liters) of Brent for delivery in December. The background was new tensions in the Iran conflict.
According to the head of the International Monetary Fund (IMF), these will be reflected in the energy markets for some time to come. “Price pressure could further intensify as demand increases with the start of the cold season in the northern hemisphere and countries replenish their reserves,” Kristalina Georgieva warned in a speech in Singapore ahead of the annual meetings of the IMF and the World Bank, according to the manuscript. Even if the conflict ends soon, prices are likely to remain high until 2027, Georgieva said.
Porsche: The sports car manufacturer Porsche presented its strategy for the coming years at a capital market day on Wednesday. In the first few minutes of trading, the price rose by up to a good five percent and was up three percent.
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Central Bank publishes meeting minutes
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The DAX lost 1.35 percent to 25,104 points, but remained above the 25,000 mark. Rising oil prices due to a tropical storm in the Gulf of Mexico and Houthi attacks, as well as troubled bond markets, particularly in France, weighed on investors. At the same time, German industrial production showed a surprise 2.0 percent increase in August, while US investors took profits and the automotive sector benefited from short-term protective measures against Chinese hybrid cars.
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