Investors on both sides of the Atlantic are likely to have enjoyed another satisfactory week. The most important indices repeatedly reached record highs.
The domestic stock market barometer closed at 18,492 points (+0.08%) on Maundy Thursday. The leading Dow Jones index closed the Holy Week at 39,807 points (+0.12%), the S&P 500 at 5,254 points (+0.11%) and the Nasdaq at 18,254 points (+0.14%).
DAX 40 Chart on a weekly basis
Fed representative Cook signals cautious approach
At the beginning of the week, Fed Director Cook had already called for a cautious approach to a turnaround in interest rates. On the way to a complete return to price stability, a cautious approach to easing monetary policy over time may be necessary, it was said.
Her colleague Austan Goolsbee from the Chicago Fed said that he considers three interest rate cuts to be appropriate in the current year.
GfK consumer climate brightens slightly in Germany - US data mixed
Tuesday was initially characterized by new data from GfK on consumer confidence, which came in slightly better than expected at 27.4 points for April (-27.9 points) after -28.8 points in March.
Orders for durable goods in the US rose by 1.4% in February compared to January, which was more than expected (1.1%). In the previous month, orders had slumped by 6.9%.
However, consumer confidence from the Conference Board failed to meet expectations of 107 points with a reading of 104.7 points.
Retail sales fall surprisingly sharply - US GDP grows more strongly than expected
On Thursday, retail sales for the Federal Republic of Germany initially caused some disillusionment. At -2.7 percent, these fell much more sharply than expected (-0.8 percent). In January, the sector had fallen by 1.2 percent compared to the previous month.
The final data on gross domestic product (GDP) exceeded the 3.2% forecast made by economists in advance. In the fourth quarter of 2023, the economy of the world's largest economy grew by 3.4% compared to the previous quarter, which was stronger than expected. In the previous quarter, however, GDP had grown by 4.9%.
At 79.4 points, consumer confidence in Michigan also rose significantly more than expected (76.5 points) after 76.9 points in the previous month.
Waller dampens interest rate cut fantasies - PCE deflator likely to decide the weal and woe
Statements made by Fed representative Christopher Waller late last night about the future shape of monetary policy also made investors sit up and take notice. According to Waller, there is no hurry to cut interest rates.
Accordingly, the latest economic data would justify a delay or a reduction in the interest rate cuts planned for this year. Waller referred to the recent disappointing consumer price data, coupled with good economic development and a robust labor market. Last week, Raphael Bostic from the Atlanta Fed said that he only expected one interest rate cut this year. Market players are currently expecting the first rate cut in June.
This Friday, the so-called personal consumption expenditures (PCE deflator) are likely to provide the decisive impetus and decide the weal and woe (13:30). This data acts as the preferred inflation measure for the US Federal Reserve (Fed).
Powell's public comments round off the trading week at 16:30.
Please note that the stock exchanges in Germany and on Wall Street will be closed for the Good Friday holiday. There will also be no regular trading in Frankfurt am Main on Easter Monday. However, there will be trading on Wall Street.
