Investors on the German stock market held back on Friday. The focus is on inflation data from the Eurozone and the US labor market, because the monetary policy decisions of the European Central Bank (ECB) and the US Federal Reserve Bank also depend on them.
The Dax fell by 0.69 percent to 16,502.46 points by midday. The MDax, the index of medium-sized stocks, fell by 0.93 percent to 25,867.43 points. The Eurozone leading index EuroStoxx 50 lost 0.87 percent to 4435.13 points.
Interest initially focused on inflation figures from the euro area. Inflation here accelerated at the end of last year for the first time since September – but as expected. According to foreign exchange expert Antje Praefcke from Commerzbank, the January data is likely to become much more important for the ECB.
The year-end rally on the stock markets benefited from hopes of interest rate cuts soon. However, some doubts have recently arisen, especially with regard to the Fed, as to whether the monetary authorities will really make their first key interest rate cut early in 2024. This weighed on the prices. Eyes now turn to the monthly US labor market report early on Friday afternoon.
Bank shares have recently benefited from the subdued expectations of interest rate cuts. Because higher interest rates – as long as they don’t choke off the economy – are good for the institutions’ earnings. This Friday, however, Deutsche Bank shares fell by around one percent after analysts at the investment house Keefe Bruyette
Shares in Siemens fell 2.3 percent after Bank of America removed its buy recommendation following share price gains in recent months. At the bottom of the Dax were the shares of the online fashion retailer Zalando, which, with a loss of almost 3 percent to 18.83 euros, continued to approach their record low of 17 euros from autumn 2014.
