Dax in the profit zone despite G7 scandal – central bank week on the horizon

 

11/06/2018 – 11:00 am: The leading German index starts the new trading week with a successful start and is currently up 0.5 percent at 12,837 points. This is all the more remarkable looking at the current news situation. The main topics of the week are likely to be the G7 scandal surrounding US President Trump last weekend and the upcoming meeting between Trump and North Korean head of state Kim Jong Un. In addition, two central bank meetings will take place during the week, which are also likely to be the focus of investors and analysts worldwide.
After the US President left the G7 Summit in Canada last weekend early and, after his departure, rejected the summit’s Community declaration, global trade relations are likely to deteriorate further. Trump’s “America first” policy is likely to cast further doubt on the reliability of the US as a trading partner.
Against the background of tomorrow’s meeting between Donald Trump and Kim Jong Un in Singapore, investors exercised restraint on the Asian stock markets at the beginning of the week. Although the Asian stock markets recorded slight gains, market players seem to be cautious with larger positions in the run-up to the meeting.
The markets are looking forward to the two important meetings of the central bank during the week. On Wednesday the US Federal Reserve announces the current key interest rate and analysts expect interest rates to rise from 25 basis points to 2.0 percent. The following Thursday, the President of the European Central Bank, Mario Draghi, will discuss the situation regarding the European Economic Area and monetary policy. At the subsequent press conference, Draghis statements on the ECB’s investment purchases are likely to attract particular attention.

 

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