SWITZERLAND
There was a positive mood on the Swiss stock exchange on Tuesday.
The SMI started higher and then trended sideways. However, as Wall Street became friendly, things started to look up. Ultimately, the Swiss leading index closed at 11,762.05 units (plus 0.66 percent)
The small cap indices SPI and the SLI followed a positive start to the SMI’s positive trend. The SPI closed 0.72 percent higher at 15,354.51 points, the SLI 0.81 percent higher at 1,921.85 points.
“The general mood is actually positive,” commented one trader. Responsible for the good mood is the US software giant Oracle, which presented a good quarterly report the evening before before the trading session.
After the US inflation figures, the market went up. Inflation pressure in the USA increased slightly in February. As the US Department of Labor announced, consumer prices rose by 0.4 percent compared to the previous month and were 3.2 (previous month: 3.1) percent above the level in the same month last year. Economists surveyed by Dow Jones Newswires had expected a monthly price increase of 0.4 percent and an annual increase of 3.1 percent. The numbers are examined closely as they can provide information about the timing of the first interest rate cut by the US Federal Reserve. Since inflation was higher than expected, this would push back the expected first interest rate cut; lower inflation would have made a first interest rate hike in June even more likely. The Fed’s interest rate decision will be published next week.
DEUTSCHLAND
Record highs were seen on the German stock market on Tuesday.
The DAX entered trading with a plus and then rose gradually. The upward momentum intensified in the final hours of trading. The DAX reached a record high, which is now at 17,973.22 points. Ultimately, the German stock market barometer also closed at a record closing level of 17,965.11 positions (plus 1.23 percent).
SAP’s competitor Oracle, which presented its quarterly report after trading the evening before, ensures a good mood.
Initially, investors exercised a certain degree of caution because the US inflation data for February was on the agenda in the afternoon. Last but not least, alongside the monthly labor market report, they are one of the key influencing factors on which the US Federal Reserve Bank bases its monetary policy decisions. In fact, inflation in the US surprisingly increased in February. Consumer prices rose 3.2 percent, after 3.1 percent in January.
This leaves the question open as to when the Fed could begin the hoped-for interest rate cuts. But German investors didn’t let this bother them and stocked up on stocks diligently. The DAX continued its record run after the recent break.
WALL STREET
The US stock exchanges showed their friendly side on Tuesday.
The Dow Jones Index was able to record profits and closed trading 0.61 percent higher at 39,005.40 points. The NASDAQ Composite also ended the day 1.54 percent higher at 16,265.64 points.
On Tuesday, the latest inflation data caused a lot of interest on Wall Street. Last month, consumer prices rose by 0.4 percent overall and by 0.4 percent in the core rate compared to the previous month. Economists had predicted an increase of 0.4 percent or 0.3 percent in the core rate. Over the year, prices increased at the core rate by 3.8 percent. That was slightly more than the 3.7 percent expected by economists, but less than the 3.9 percent recorded in January. Meanwhile, real incomes stagnated in February.
Last week, US Federal Reserve Chairman Jerome Powell said that interest rate cuts were not far away. However, the Federal Reserve wants more certainty that inflation will return to the target of 2 percent.
ASIA
There was no consistent trend to be seen on the largest stock exchanges in Asia on Wednesday.
In Tokyo there was Nikkei 225 ultimately down 0.26 percent to 38,695.97 points.
In mainland China it is Shanghai Composite has now turned negative and is now losing 0.42 percent to 3,043.05 index points. In Hong Kong it moves Hang Seng Meanwhile, by a marginal 0.04 percent to 17,100.83 points.
The majority of the Asian stock markets are showing slightly positive signs in the middle of the week. The mood is supported by positive guidance from Wall Street, where good Oracle figures pushed higher-than-expected US consumer prices into the background. What was particularly well received was that Oracle reported “enormous” demand for AI. This provided further fuel for the recent “AI rally”. Nevertheless, inflation data for February suggests that interest rates in the USA could remain at elevated levels for longer than previously thought and that the US Federal Reserve is unlikely to be in a hurry to cut interest rates.
The yen is currently showing little change, but is giving up temporary gains. It is said that the market is still betting on the BoJ exiting its ultra-loose monetary policy. Most recently, central bank President Kazuo Ueda reiterated that the Japanese economy is gradually recovering despite some signs of slowing, said Lloyd Chan, senior currency analyst at MUFG Bank. This suggests that the central bank is well on the way to exiting its negative interest rate policy. This could happen at next week’s meeting, the participant continued.
On the Chinese mainland, losses in the real estate and insurance sectors are particularly damaging. There is also increasing skepticism as to whether China will achieve its self-imposed goal of economic growth of 5 percent. According to HSBC economists, support measures are necessary to stimulate demand.
Redaktion finanzen.ch / awp / Dow Jones Newswires