Investors are likely to focus their attention this evening on the Fed's interest rate decision and the subsequent FOMC press conference with Jerome Powell. It is also important to keep an eye on developments in the Greenland conflict. In addition, the reporting season on both sides of the Atlantic could continue to provide important impetus.
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Greenland developments still in focus - uncertainty likely to remain, however
Despite the recent easing of tensions in the Greenland conflict, the geopolitical question marks are likely to remain. On Wednesday, following his speech at the World Economic Forum in Davos, US President Donald Trump announced on his internet platform „Truth Social“ that he had reached an agreement with NATO Secretary General Mark Rutte on a „framework for a future agreement“ on Arctic security. However, it remained unclear what this agreement would look like.
In his speech, the US President ruled out military means to take over Greenland, thus providing relief. He also backed down on his threat of punitive tariffs against Germany and other NATO countries.
US Federal Reserve could leave interest rates unchanged - All eyes on Jerome Powell
The Fed rate decision is on the agenda this Wednesday evening (20:00). Fed Chairman Jerome Powell is expected to address the public at 20:30. The speech in question is usually tapped for monetary policy clues.
The CME Group's „Fed Watch Tool“ indicates that 97.2% of market participants expect a pause in interest rates. The chance of an interest rate hike of a quarter of a percentage point is only 2.8%. The current interest rate range is 3.50 to 3.75 percent.
Focus on US economic data on Thursday and GDP growth rates on Friday
On Thursday, for example, the weekly initial claims for US unemployment benefits could provide important impetus (14:30). New industrial orders for US land could also provide impetus (16:00).
The GDP growth rates for Germany (10:00 a.m.) and the eurozone (11:00 a.m.) should be noted on Friday morning. Preliminary inflation rates in Germany will follow at 14:00 and US producer prices at 14:30.
Quarterly figures in view - further impetus from US tech companies conceivable
On Thursday, investors in Germany should keep an eye on SAP's (ISIN: DE0007164600) quarterly figures for the latest financial quarter.
In the USA, the focus today is on the figures for the past financial quarter from Meta Platforms (ISIN: US30303M1027), Microsoft (ISIN: US5949181045) and Tesla (ISIN: US88160R1014). Apple (ISIN: US0378331005) will report on Thursday.
