The prospect of a brilliant financial package from the German government should keep investors in Germany happy. This evening, however, attention will turn to the Fed's second meeting in 2025. Even if no change in the key interest rate is expected, the subsequent press conference with Jerome Powell could provide important impetus.
DAX 40
Source: TradingView
Bundestag adopts debt package for defense, infrastructure and climate protection
The latest decision by the Bundestag on a billion-euro debt package for defense, infrastructure and climate protection could continue to create a celebratory mood on the German stock market. On Tuesday, a debt package introduced by the CDU/CSU and SPD was voted on accordingly. At the same time, a special fund for infrastructure spending amounting to 500 billion euros was also approved.
Customs conflict as a factor of uncertainty - further escalation not ruled out
The seemingly never-ending tariff conflict between the US and the EU, for example, could escalate further. Last week, Trump threatened to impose punitive tariffs of 200% on champagne and wine, for example. A further escalation of the conflict is likely to be detrimental to general market sentiment.
"Fed Watch Tool" signals interest rate pause - investors hope for interest rate cut signals from Powell
This evening, investors are likely to focus on the Federal Reserve's interest rate decision at 19:00 and the subsequent FOMC press conference (19:30).
The CME Group's "Fed Watch Tool" continues to calculate that there is a 99% chance of an interest rate pause this evening. The probability of a rate hike of 25 basis points is only 1 percent. The interest rate band is currently quoted at 4.25 to 4.50 percent.
Further economic data ahead on Thursday and Friday - focus on stragglers in the reporting season
Even though the economic calendar this week is comparatively manageable, the weekly initial claims for US unemployment benefits are usually in focus on Thursday (13:30). The Phily Fed manufacturing index could also provide impetus.
On Friday, attention will focus on a scheduled speech by John Williams of the New York Fed (15:05) and consumer confidence for the Eurozone (17:00).
In the current reporting season, figures are expected from RWE (ISIN: DE0007037129) on Thursday and from Salzgitter (ISIN: DE0006202005) on Friday.
