Wednesday's session on the German stock market brings moderate declines in the DAX index. Investors' attention today is focused on the FOMC decision, macro projections and Powell's speech, which will be fundamental factors in creating market sentiment in the coming months. The Ifo Institute and the German Economic Institute presented their projections for 2023. The institutions expect a recession in the economy, which, however, will not lead to a crash.
Germany's GDP will fall by 0.1% in 2023 (an earlier projection called for a 0.3% decline).
The institute raised its 2022 growth forecast to 1.8% from the previous 1.6%.
Ifo predicts that the economy will contract primarily in the fourth quarter of 2022 and the first quarter of 2023.
Inflation is expected to be 7.8% at the end of 2022 and 6.4% next year. In 2024, inflation is expected to be 2.8%.
The swap market is currently pricing in a near 13% chance of a 75bp rate hike at the ECB's December meeting. Source: Bloomberg
DE30 index chart, D1 interval. The benchmark German blue chips are trading with moderate declines during today's session. Source: xStation 5
Wednesday's session on the German market brings declines in most sectors of the economy. Source: Bloomberg
News:
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Merck KGaA (MRK.DE) shares are gaining after a buy recommendation by UBS bank. The institution raised its target price to 210 euros from 184 euros. MRK shares gain more than 1.5%.
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TUI (TUI.DE) shares lose nearly 7% following news of the planned repayment of a government loan disbursed in connection with the Covid pandemic through the company's capital increase program.
Changes in the institution's holdings in individual companies of the DAX index (data from the last session). Source: Bloomberg
The largest percentage changes in the companies included in the DAX index. Source: Bloomberg
The most active stocks in the DAX index (DE30). Source: Bloomberg
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