Following the semi-annual Powell hearing before the US Congress, the DAX remains on the lookout for direction. In particular, the publication of new US inflation data is likely to cast its shadow in the meantime. The results of the recent parliamentary elections in France could also continue to prove to be a risk factor.
DAX Chart
Source: Tradingview
Powell refuses to reveal his cards to the US Congress
Jerome Powell told the US Congress on Tuesday that keeping interest rates higher in the longer term could have a negative impact on economic growth. However, even if Fed representatives are interested in lowering interest rates, "more good data" is needed, he said. This is likely to refer to inflation trends.
Following the parliamentary elections in France, a new government must now be formed. It is possible that a left-wing alliance could become the strongest force in the newly elected National Assembly.
From the perspective of the economic data calendar, today should be another exciting day for investors with a speech by Fed Chairman Jerome Powell (16:00). His colleague Bowman and colleague Goolsbee will follow at 20:30.
Development of US inflation likely to decide the weal and woe
On Thursday morning, the focus is likely to initially be on the publication of new inflation rates for the Federal Republic of Germany (08:00). Economists expect an increase of 2.2% for the month of June (year-on-year), following 2.4% in May.
Core inflation could remain unchanged - investors still hope for a decline
The development of the core rate of inflation for the USA could possibly decide the weal and woe (14:30). In this case, experts expect a status quo of 3.4 percent. This rate is seen as decisive for the US Federal Reserve (Fed).
Consumer prices, including energy and food, may have risen by 3.1% in the same period, compared to 3.3% in the previous month.
A speech by Raphael Bostic at 5:30 p.m. is worth keeping an eye on.
Focus on US producer prices and the start of the reporting season in the United States on Friday
Important US price data is once again on the daily agenda on Friday. At 14:30, the so-called US producer prices are expected, which could provide an important indication of future inflation trends. In this case, prices are likely to have risen by 0.1%, after -0.2% in May.
Further impetus awaits DAX investors in the afternoon with the preliminary data on Michigan consumer confidence (16:00).
Last but not least, the start of the US reporting season in Frankfurt am Main is also likely to attract attention. In addition to Citigroup, JPMorgan and Wells Fargo will present their results for the past quarter.
