Even on Wednesday, investor appetite for buying remains subdued. The question marks surrounding the further interest rate path of central banks and the at times ambitious valuations in the AI sector are too significant. This mix of uncertainty continues to lie over the market like a heat haze and dampens the risk appetite of many investors. Concerns about interest rates and the debate about the sustainability of AI euphoria are thus continuing to create headwinds. The 25,000-point mark is thus increasingly developing into a test of character.
The bar for positive surprises is now high. It is therefore becoming increasingly difficult for optimists to find new buying arguments. While interest rate concerns remain present and geopolitical risks are not off the table, speculation surrounding the AI sector is also being questioned more critically.
For investors, the question now arises whether the recent price losses are primarily due to profit-taking or whether a solid correction could develop from them.
DAX
Despite relaxation in the Middle East – Geopolitical risks are likely to continue smoldering
Despite the framework agreement between Iran and the US, geopolitical risks are unlikely to have entirely disappeared. All outstanding issues are to be clarified and a final agreement reached within 60 days, it was stated. However, it remains to be seen whether a full agreement can be achieved. In view of the recent disappointments in recent weeks and months regarding a war with Iran, investors are likely to scrutinize all developments very carefully.
ifo index brightens in June after peace signals in Iran war
The ifo Business Climate Index was published this morning. With 85.6 points in June, the index fell as expected, after 85 points (revised) in the previous month. The ifo Institute surveys around 9,000 executives monthly.
GfK Consumer Confidence and numerous US economic data to watch on Thursday
On Thursday, the GfK consumer confidence will be in focus in this country at first (8:00 AM).
Fresh economic data from the US will be released at 2:30 PM. Expected are the core personal consumption expenditures rate, durable goods orders, and the GDP growth rate, among others. US price data in particular should be analyzed for indications of monetary policy.
A week after the latest Federal Reserve meeting, US monetary policy is likely to increasingly come into focus for investors. According to the CME Group's „FedWatch Tool,“ 63.7% of market participants expect interest rates to remain unchanged at the next scheduled meeting on July 29, while 36.3% anticipate a 25-basis-point increase. The current target range for the federal funds rate is 3.50% to 3.75%.
SpaceX stock falls significantly after brilliant stock market debut
Among other things, in light of recent interest rate concerns and AI doubts, SpaceX shares (ISIN: US84615Q1031) have also been significantly affected. Within three days, the shares have lost around 23 percent, or approximately 600 billion dollars, of their market value.
On June 12, the company had the largest IPO on the US technology exchange NASDAQ. A total of over 85 billion dollars were raised.
SpaceX
