The German stock index, the Dax, opened the trading day on Thursday morning with little change. At around 9:30 AM, the leading index was calculated at approximately 25,575 points, which was essentially the same as the closing level from the previous day. Leading the list of gainers were RWE, Deutsche Bank, and Deutsche Telekom, while SAP, Adidas, and Scout24 finished at the bottom.
Thomas Altmann of QC Partners states that the most significant event of the day is clearly the ECB’s interest rate decision. The stock markets are firmly anticipating a 25-basis-point hike in the key interest rate. Since this increase is already factored into current stock prices, it is expected to have no immediate impact. Consequently, the ECB’s outlook will be the decisive factor. Altmann adds that the markets currently foresee further rising benchmark interest rates, possibly two more steps in the coming year. If these expectations prove overly aggressive, there could be recovery potential for the bond market, which has lately been struggling.
Meanwhile, the European common currency showed some strength early Thursday morning. The euro was trading at $1.1639 per US dollar, meaning the dollar could be acquired for 0.8592 euros.
Oil prices dropped. Around 9 AM German time, a barrel of North Sea Brent crude cost $100.80, a decrease of 38 cents, or 0.4 percent, compared to the closing price of the previous trading session.
