The last few trading days were characterized in particular by geopolitical uncertainties in the conflict between the USA and Iran. At the same time, the FOMC minutes are likely to have further unsettled investors in terms of monetary policy.
Fears of a US military strike against Iran could continue to dampen market players' risk appetite on the last day of the trading week.
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Concerns about US military intervention in Iran: geopolitical risks are growing
Concerns about an escalation of tensions between the USA and Iran continue to keep investors on tenterhooks. According to the White House, the latest talks in Geneva on Iran's nuclear program have made progress, but there are still differences on some points.
The United States is demanding that Iran abandon its nuclear program. On the other side, Tehran rejects this and also denies developing a nuclear weapon.
ZEW index disappoints - new orders for durable goods in the USA better than expected
According to the Centre for European Economic Research (ZEW), economic expectations for Germany weakened in February, contrary to expectations.
At 58.3 points, the ZEW index was significantly below the estimates made in advance (65 points), following 59.6 points in the previous month.
Incoming orders for durable goods in the USA fell by just 1.4% compared to the previous month and therefore less sharply than had been feared (-2%), following an increase of 5.4% in the same period of the previous year.
Fed notes unsettle investors - interest rate cut fantasies dampened
The eagerly awaited Fed minutes from the latest US Federal Reserve meeting were published in the middle of the week.
All in all, the minutes showed that there is obvious disagreement within the ranks of the US Federal Reserve about the future interest rate course. During the Fed meeting on January 27-28, several monetary policy decision-makers pointed out the risk of possible interest rate hikes.
At the end of January, the Fed decided to leave the key interest rate at a range of 3.50 to 3.75 percent. However, Fed governors Christopher Waller and Stephen Miran voted in favor of a rate cut of a quarter of a percentage point, citing a possible downturn in the job market.
The purchasing managers (HCOB) for the Federal Republic of Germany in the services, manufacturing and total sectors all came in better than expected. A similar picture emerged for the eurozone, with the services sector falling short of expectations.
In the afternoon, the counterparts (S&P Global) for the United States are also on the agenda (15:45).
Important US economic data rounds off the trading week
At the end of the week, investors can also look forward to data on the core rate of personal consumption expenditure and the GDP growth rate from the USA (14:30).
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