- DAX gains 0.30% in the first part of the day
- Publication of the minutes of the latest ECB meeting
Today, in European markets, we are observing a rebound from recent declines. The German DAX (DE40) is gaining 0.35%, supported by a weakening dollar. Other EU indexes are also recording increases, with the French index FRA40 (+0.50%) gaining the most. Market attention in Europe today will be focused on the publication of the ECB's minutes at 11:30 AM GMT and a speech by Christine Lagarde at 3:15 PM GMT. Recent ECB statements have indicated a less dovish stance regarding rapid interest rate cuts. If the minutes confirm that the ECB is not inclined to pursue a dovish policy, it could negatively impact stock prices and support the euro.
Business highlights:
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Open account Try demo Download mobile app Download mobile app- German business leaders from companies like Infineon and Evonik have expressed concerns about the rise of far-right extremism, particularly as the Alternative for Germany (AfD) party gains popularity in polls. Traditionally, German corporate leaders avoid commenting on party politics, but recent events involving the AfD have sparked national outrage and fears about Germany's reputation as a destination for foreign investment and skilled labor. This concern is heightened by the current domestic labor shortage affecting economic growth.
- Infineon's (IFX.UDE) CEO Jochen Hanebeck publicly condemned the idea of "remigration" as inhumane, a sentiment echoed by employees and the wider German public, many of whom have protested against the AfD, with some politicians even suggesting the party should be banned.
- Today, the German Deutsche Bundesbank published a report on macroeconomic financial accounting titled "Financial asset formation and external financing in Germany in the third quarter of 2023." In the third quarter of 2023, private households in Germany saw a decrease in financial assets by 35 billion euros to 7,467 billion euros, primarily due to valuation losses. Their investment behavior shifted towards higher-interest time deposits, while the real total return on financial assets remained negative but on an upward trend. Private households' liabilities increased modestly, mainly from housing loans, leading to a slight decrease in the debt ratio. Meanwhile, external financing for non-financial companies dropped significantly to 13 billion euros, the lowest since late 2019, largely due to reduced borrowing.
DAX
The German DAX index is gaining 0.30% today. After recently breaking down through the lower support zone around 16,650 points, the quotes are now attempting to test it from below. If the index resumes its decline, it could confirm the trend and lead to deeper drops, possibly down to the 16,100 levels. Conversely, the bulls need to defend this support and return above 16,650 points.
Source: xStation 5
Infineon (IFX.DE) shares are gaining 2.60% today, making them one of the top gainers in the DE40 index.
Source: xStation 5
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