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DAX Market Report: After Interest Rate Hikes in the US, Switzerland and Great Britain: DAX Temporarily Falls Below 13,100 Points | news

Germany’s leading DAX index opened Corpus Christi down 0.33% to 13,440.43 points. In the next course it clearly yields. Sometimes the score of 13,100 points also falls. Most recently, the stock market barometer fell 2.58% to 13,137.16 points.

The Fed raises the interest rate

The Fed had raised US interest rates by 0.75 percentage points the night before, a little more than most pundits initially expected. But some had thought even more was possible, the biggest rate hike since 1994. The Fed is battling the highest inflation in 40 years.

Fed chief Jerome Powell is trying to balance the tightening of the monetary policy and calm the markets: “Don’t expect hikes of 75 basis points to become commonplace,” he said. This particular statement had a positive effect on New York stock prices. Goldman Sachs economist Jan Hatzius, for example, had recently envisioned two of these steps below.

rate increase also in Switzerland

Meanwhile, the Swiss National Bank (SNB) has surprisingly raised the reference rate significantly. The central bank raises the benchmark interest rate by 0.50 percentage points to minus 0.25%. In this way, monetary watchdogs want to counter inflationary pressures. An increase in interest rates was thought possible in advance, but not taken for granted, especially since inflation in Switzerland has recently increased, but not as much as in other regions of the world.

The Bank of England follows the Fed and the SNB

As expected, the UK central bank has further tightened its monetary policy. The Bank of England announced that the key interest rate will rise by 0.25 percentage points to 1.25 percent on Thursday following the MPC’s monetary policy committee meeting in London. Analysts expected this during the move.

As of Tuesday, the DAX had continued its descent, triggered by fears of inflation and recession, to below 13,300 points and had lost nearly ten percent in a few days since its intermediate high on Whit Monday. A broader rate move was discounted with this sell-off. Market nervousness remains high, as current taxes show once again.

Editorial financeen.net / dpa-AFX / Dow Jones Newswires

Image sources: PhotoSTS / Shutterstock.com, Julian Mezger for Finanz Verlag

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