The last few trading days were characterized in particular by the Fed meeting. At the same time, geopolitical uncertainties have increasingly preoccupied investors on both sides of the Atlantic. The fear of active US intervention in the Middle East conflict continues to hover over investors' heads like the sword of Damocles.
DAX
Source: TradingView
Investors fear active US intervention in the Middle East conflict between Israel and Iran
The Middle East conflict between Iran and Israel continued to drive investors this trading week. The market continues to fear that the war in the Middle East will escalate once again. Trump recently called on Iran to surrender unconditionally. Should the United States intervene, this could possibly be seen as a further stage of escalation.
ZEW Index rises thanks to positive economic signals and falling interest rates
The ZEW index shot up by 22.3 points to 47.5 points in June, according to the Mannheim Center for European Economic Research on Tuesday. Market participants' economic expectations rose due to positive signals from the economy and falling interest rates.
Interest rate band remains at 4.25 to 4.50 percent in the USA - economic growth forecast revised downwards
As expected, the US Federal Reserve (Fed) left the key interest rate unchanged late on Wednesday evening. This means that the key interest rate remains at a range of 4.25 to 4.50 percent.
Overall, the monetary authorities held out the prospect of an interest rate cut of half a percentage point for the current year, merely confirming the interest rate outlook from March. A key interest rate of 3.6 percent is now being targeted for the end of 2026, after 3.4 percent in the spring.
In terms of economic growth, however, the Fed is putting on the brakes. Growth of just 1.4 percent is expected for the current year, compared to 1.7 percent in March.
German producer prices fall - Philly Fed index rounds off trading week
While the stock exchange doors remained closed on Wall Street on Thursday due to the holiday, trading continued in Frankfurt am Main despite "Corpus Christi".
New data on German producer prices, which continue to fall, was also published this Friday morning. According to the Federal Statistical Office (Destatis), they fell by an average of 1.2% compared to the same month last year. "The main reason for the year-on-year decline in producer prices in May 2025 was lower energy prices," Destatis stated.
In a comparatively manageable trading week from the point of view of the economic calendar, investors on the US side are still looking at the Philly Fed manufacturing index today (14:30).
Dow Jones Industrial Average Index
Source: TradingView
