Hopes for an easing of tensions in the Middle East war have recently been curbed by rising oil prices. Investors will likely pay particular attention to further clues on inflation midweek.
Price table of the Frankfurt Stock Exchange. Photo: Handelsblatt
Dusseldorf. Oil prices, inflation concerns and interest rate expectations are currently dominating events on the German stock market. However, hopes of an easing of tensions in the Middle East war have recently been able to at least limit the high oil prices.
As a result, the leading German index closed yesterday, Tuesday, at 25,399 points, barely changed compared to the previous day. In the middle of the week, the Dax was trading in positive territory on over-the-counter platforms.
Investors are likely to focus on inflation data from Germany and the USA this Wednesday. The Federal Statistical Office presents new data on inflation in this country. In the US, the US Department of Commerce publishes the Personal Consumption Expenditure (PCE) Price Index. This is the preferred inflation measure of the US Federal Reserve (Fed). The core rate excludes the more volatile prices for food and energy.
1 – Stock exchanges in New York: Dow Jones, S&P 500 and Nasdaq
After a turbulent start to the week, the markets found little support yesterday, Tuesday. The most important indices closed with losses.
The Dow Jones standard values fell by almost 0.3 percent to 51,349 points.
The broadly diversified S&P 500 closed almost 0.3 percent in the red at 7,670 points.
The Nasdaq technology exchange closed little changed at 26,797 points.
The Nasdaq 100, a reflection of the 100 non-financial companies with the highest market capitalization, closed almost 0.3 percent higher at 30,339 points.
2 – Stock exchanges in Asia
After the start of trading, the stock markets in Asia benefited from good corporate profits and continued optimism surrounding the topic of artificial intelligence (AI).
The Japanese Nikkei index rose by 1.3 percent to 66,318 points.
The broader Topix rose by 0.8 percent to 4076 points.
The Shanghai stock exchange gained 0.3 percent.
3 – Retail
At 8 a.m., the Federal Statistical Office reports how retail sales in Germany developed in August. Economists expect a slight increase. Since private consumption is an important economic support, this would confirm the recent upward trend in the German economy.
4 – German inflation
The Federal Statistical Office will publish the German inflation rate for September at 2 p.m. Economists expect the Harmonized Index of Consumer Prices to be above the three percent mark for the first time in three years.
5 – Quarterly figures
After the market closes, Micron Technology presents its quarterly figures. The memory chip manufacturer from the USA was one of the biggest beneficiaries of the AI boom in the first half of the year. Investors’ expectations are correspondingly high
6 – US economy
Economic data will come from the USA later in the day. Investors are particularly likely to wait for the publication of the PCE index at 2:30 p.m. This measures how much private households in the USA actually spend on goods and services - and how these prices change. Unlike the Consumer Price Index (CPI), which is considered the official U.S. inflation rate, the PCE also takes into account expenses that are not directly paid by households, such as employer health insurance benefits.
Details on gross domestic product for the second quarter will also be released, as well as personal spending and the Purchasing Managers' Index for Chicago. Strong data could raise interest rate expectations.
7 – US Federal Reserve Banker
Several members of the US Federal Reserve will appear throughout the day - including Fed Governor Lisa Cook. Investors will be watching for clues about further monetary policy.
Appointments company
10:00 p.m., USA: Micron Technology, fourth quarter results
Germany: BMW AG, continued Capital Markets Day
Dates economic situation
8:00 a.m., Germany: Retail sales August
8:00 a.m., Germany: Import/Export prices August
9:55 a.m., Germany: September labor market data
2:30 p.m., USA: Gross Domestic Product (3rd release), second quarter
2:30 p.m., USA: Personal Expenses and Income August
2:30 p.m., USA: Consumer spending August
2:30 p.m., USA: Core PCE price index
3:45 p.m., USA: Index Purchasing Managers Chicago September
4:30 p.m., USA: Crude oil inventory data from the state Energy Information Administration (EIA)
Related topics
USAGermanyFedAsiaDaxDow Jones
With agency material.
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