für Deutschland The end of year rally on the stock exchanges has started; Good inflation data for Germany.
Last week, Jerome Powell, the head of the US Federal Reserve, caused profit taking in the stock markets with his speech. The setback went hand in hand with dashed hopes of an imminent rate cut. As a result, the DAX closed the week with only a slight plus of 0.3%. In the US, however, the worries about interest rates were quickly checked off, so that there was even a further upward trend at the end of the week.
This week, the focus was on Tuesday. This week was particularly exciting yesterday, when the US consumer prices for October were on the agenda, with which traders were eagerly awaiting around noon. Experts had previously titled the inflation data as the upcoming „key event“ of the week.
Today, by the way, there is still an important date to look forward to, the outcome of which is eagerly awaited. The geopolitical meeting between China’s President Xi and US President Biden. There are, of course, plenty of issues here.
USA consumer prices were well received The US consumer prices released yesterday at 2:30 pm were lower than expected; at 0.0% from the previous month, unchanged, while the forecast was +0.1% and the increase in the previous month was +0.4%. The increase from October 2022 was also 3.2%, lower than the previous estimates of 3.3%.
With regard to the always particularly closely watched core rate, that is, the inflation rate without food and energy prices, prices rose by 0.2% from the previous month, so here too the increase in the inflation rate was lower than expected (forecast 0.3%). On a year-on-year basis, the core rate rose by 4%, also lower than previous estimates of 4.1%.
The markets reacted positively to the constant inflation rate reported in October, as the DAX chart impressively shows:
The German leading index made a real leap of joy yesterday above the 15,550 mark. Start of the year-end rally? Is this now the beginning of the much-awaited year-end rally? With the reported US consumer prices, the indices on Wall Street have now finally launched the year-end rally. After the Nasdaq, the standard value indices have now also broken out of their consolidation phase upwards.
The fact is, however, that the conditions for a pleasant end of the year on the stock exchange are excellent. Don’t let go of any quality stocks and use weak phases consistently to build up positions in order to make a good profit at the end of the year.