The past few trading days have been dominated by the publication of new US inflation data. Meanwhile, the trade dispute recently initiated by Donald Trump with important economic nations has evidently lost its scare for the time being. The reporting season is also likely to have had a supportive effect, at least in Germany. The DAX broke through the 22,000-point mark for the first time in history.
DAX
Source: TradingView
Concerns about trade disputes could put investors to one side for the time being
Investors have been able to cope better than expected with concerns about the impact of the trade dispute. Last weekend, for example, Trump announced punitive tariffs on aluminum and steel imports, initially stoking new fears of an escalation of the tariff dispute. Last week, the markets were already increasingly concerned about the unforeseeable impact of the conflict between the USA and China, for example, on the global economy.
Powell signals no rush to cut interest rates - No comment on tariff dispute
Also of interest were statements made by Fed Chairman Jerome Powell to the Congressional Committee in Washington on Tuesday. Powell signaled that the Fed was in no hurry to lower interest rates further. "Too rapid or too strong an easing" of monetary policy could stand in the way of success in the fight against inflation, he said.
He also said that it was not the Fed's job to comment on customs policy.
US inflation higher than expected - interest rate cut fantasies are dampened considerably
At 3.0% in January (compared to the same month of the previous year), US inflation was higher than economists had predicted (2.9%), following 2.9% in December. The development of the core inflation rate, which excludes the drivers energy and food, is likely to have been even more impressive. At 3.3%, this rate was 0.2 percentage points above expectations.
The publication of US producer prices on Thursday afternoon, which also came in higher than expected (0.3%) at 0.4% (compared to the previous month), is also likely to have been significant. This data is likely to have confirmed the recent rise in inflation and should be seen as a warning signal.
Europe's economy growing faster than expected - US retail data in focus
The European economy grew by 0.1% in the months of October to December compared to the previous quarter, as the EU statistics authority Eurostat announced today, Friday. However, stagnation was still expected in the summer. In the previous quarter, the economy grew by 0.4 percent. For the year as a whole, this represents an increase of 0.7 percent.
This Friday afternoon, attention will finally turn to the publication of US retail sales (14:30).
Siemens Energy can shine - Coinbase benefits from crypto rally
In the reporting season, the figures from Siemens Energy in particular caused a stir on Wednesday. According to the report, the energy technology group is benefiting from a robust energy market in the USA. The Group can also shine with well-filled order books and a positive outlook for the new year. "Our strong first quarter reflects the market opportunities arising from the rising demand for electricity," said the CEO.
Siemens Energy
Source: TradingView
The US crypto exchange Coinbase was able to generate a turnover of 2.3 billion dollars in the fourth quarter after 953.8 million dollars in the previous year due to the recent crypto rally. Investors had been betting in particular on Donald Trump's re-election and thus on a crypto-friendly government.
Coinbase
Source: TradingView
