Investors keep powder dry – Inflation data as a potential market mover

02/23/2018 – 10:25 am: While Wall Street and the Far Eastern stock markets are able to regain momentum after an interim consolidation, the Dax barely manages to keep up. Rather, the German benchmark index is making every effort to stabilise at the current price level. It still shows a clear relative weakness to its US counterparts. With a short excursion over the 12,500 point mark, the domestic stock market barometer shows upward tendencies, but returns the premium in question in early trading. While Dow Jones and Nikkei closed behind a gain of 0.7 percent each, the Dax is currently falling again.

This reluctance is also likely to be due to the late morning publication of the consumer price index for the Euro area. In particular, inflation and its implications for interest rate policy have recently been the dominant theme on the stock markets. All the more reason why investors in Germany are now looking at the inflation rate in the so-called Old World. This is expected to change by minus 0.9 % in January and by 1.3 % in the annual rate. This means that a market mover is on the agenda for the end of the week, which – depending on the data – could result in considerable movement potential.

At 12,451 points, the Dax is 0.1 percent lighter at the moment. The Euro also lost 0.1 percent against the greenback and is currently trading at 1.2315 US Dollars. Gold loses 0.3 percent in the morning to currently $1,328 per troy ounce.




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