Unexpectedly, a higher inflation rate was reported in the USA yesterday, Wednesday, which initially caused the US stock markets to sink slightly. In addition to the technology index, both the Dow Jones Industrial Index and the broad-based S&P 500 closed slightly in the red. However, a look across the pond showed that the European stock markets were not impressed by this bearish surprise and continued their record runs. The EuroStoxx 50, DAX and the British FTSE 100 all continued to rise and set further record highs.
In the EuroStoxx, it was the shares around the French luxury group Kering that topped the list of European top 50 stocks with over 7 percent. In the German leading index DAX, it continues to be the Siemens Energy share that seems to know no holding. The stock is making another attempt to reach a new record high. The growth of the share, which was still available for less than 25 euros in September 2024 and is now making its way above 60 euros, is impressive. The British stock market also recorded a new record high for the third day in a row. The stock market was driven by Prudential Asset Management shares, which rose by 6 percent after ICICI Bank confirmed that it held the majority.
Are these signs of a trend reversal in the euro?
The euro also made a surprising move against the US dollar after the inflation figures were published. On Tuesday, Fed Chairman Jerome Powell had announced that there was no hurry to cut interest rates and with the reports of the increased inflation rate, some market participants have already assumed that the US dollar will strengthen again. As soon as the cat was out of the bag, the euro plummeted but was able to make up for all the losses in the course of the day and started to turn around. A sign of the trend reversal?
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