After three consecutive days of losses, the DAX has returned to the fast lane. The perceived progress toward a ceasefire in the war between Russia and Ukraine provided investors with the necessary arguments to buy back into German stocks. At the end of the trading day, the DAX had risen by 1.56%, reaching 22,676 points. The positive result was also supported by inflation data from the U.S., which showed a sharper-than-expected decrease in inflation. As a result, U.S. markets, which had been under significant pressure recently, were able to take a breather. This effect was also felt on European stock markets.
The stocks of companies like Rheinmetall, Siemens Energy, and Sartorius were the winners of the day, while the stocks of Henkel, Porsche, and Bayer showed negative performance among the DAX-listed companies.
Hope in the UK that Tariffs May Be Avoided
Investors in the UK’s FTSE 100 index were also able to breathe a sigh of relief. The downward trend was initially halted. However, it would still be premature to talk about a trend reversal, as Wednesday’s movement was more of a standstill with a slightly positive bias. The 0.3% increase was also due to the declining inflation in the U.S. A slight sigh of relief also came from Keir Starmer, the UK Prime Minister, who expressed hope that U.S. tariffs on aluminum and steel could be avoided. If this hope is confirmed, there is potential for the FTSE 100 to get back on track.
British Pound Nearing 1.30 USD
What was good for the stock markets on Wednesday, due to the U.S. inflation data, also benefited currencies against the U.S. dollar from the weakness of the U.S. dollar. For example, the British pound ended the trading day again in positive territory, getting closer to its next goal of 1.30 USD. Currently, there is no sign of weakness in the pound.
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