The Dax initially freed itself from the quagmire of inflation, interest rate and economic worries in late trading on Wednesday. After the leading German index had fallen below the 12,000 point mark for the first time since November 2020 in the morning, it was able to gradually reduce its losses in the afternoon, exceed the round mark again and ultimately even turn positive.
In the end, the Dax gained 0.36 percent to 12,183.28 points and almost closed at its high for the day. The MDax ultimately lost 0.07 percent to 22,326.58 points.
Market observers identified two reasons for the later recovery: the clear gains on New York’s Wall Street and the surprise resumption of bond purchases by the Bank of England. “This is a first cautious sign that central banks could capitulate in the coming weeks and yet return to quantitative easing (QE),” commented analyst Konstantin Oldenburger of CMC Markets. QE refers to the purchase of securities by a central bank. This is a form of loose monetary policy.
