The next few days are crucial for the future direction of the equity markets. Investors are nervously awaiting fresh US inflation data, which will be important for the future monetary policy of the US Federal Reserve. The Dow Jones ended jittery trading up 0.1 percent at 29,239.19 points. The market-wide S&P 500 was down 0.7 percent to 3588.84 points. The technology selection index Nasdaq 100 fell by 1.2 percent to 10791.35 points. The US stock exchanges oscillated between gains and losses. Investors want to avoid positioning themselves clearly ahead of important dates this week.
The situation on the stock markets in Europe and the USA has been tense for a long time. “The stressful subject areas are diverse,” said analyst Frank Wohlgemuth from the Essen National Bank. Solutions are very difficult, if at all, to come by.
“As if sentiment and news weren’t bad enough, there are still a few important dates on the agenda this week such as the minutes of the last Fed meeting tomorrow and the inflation data from the US on Thursday, which offer the potential for further price capers.” , comments Konstantin Oldenburger, market analyst at CMC Markets.
Accelerating fears of inflation and recession could then finally bring the stock market to its knees, the expert believes. “The next few days should decide whether investors’ fears and concerns are justified or not.”
The DAX had previously closed at a discount of 0.4 percent to 12,220 points. Fear of the central banks continuing to tighten monetary policy, concerns about inflation and the clear signs of a strong economic downturn also forced local investors to exercise caution.
IMF lowers global forecast. Concerns about a recession also remain an important topic on the stock markets. Today the International Monetary Fund (IMF) lowered its global growth forecast for the coming year to 2.7 percent. The forecast is the weakest in around 20 years, with the exception of the predictions during the pandemic and the global financial crisis.
The worst is yet to come, and for many people 2023 will feel like a recession, says IMF chief economist Pierre-Olivier Gourinchas. “As storm clouds gather, policymakers must keep a steady hand.”
The DAX is a blue chip stock market index consisting of the 30 major German companies trading on the Frankfurt Stock Exchange. The index is the most important index of the German stock market. The future of the DAX looks promising as the German economy is expected to grow in the coming years. The DAX is expected to continue to be a key indicator of the German economy and the stock market.