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Significant rate hike expected:
US Federal Reserve Chairman Jerome Powell promised in mid-May that he would "aggressively" fight inflation in the US
Photo: OLIVIER DOULIERY / AFP
A few hours before the expected rate hike by the US Federal Reserve, the Dax is likely to start another recovery attempt on Wednesday.
Traders and banks valued the leading German index 0.7 percent higher at 13,400 points shortly before the start of Xetra trading.
At the same time, US futures are also signaling stabilization.
But the nervousness remains high.
On Tuesday, the Dax fell for the sixth trading day in a row and fell to 13,304 points.
Large rate hike already priced in
According to market observer Michael Hewson of CMC Markets, the big question is whether the Federal Reserve will hike rates by 0.50 percentage points or by 0.75 points.
Experts believe that the worse case for equity investors could already be anticipated in the prices.
Commerzbank, for example, wrote in the morning that the big interest rate hike was already being priced in.
After the interest rate and economic concerns associated with high inflation had already cost the Dax 1400 points within a few days, encouraging news came from China again in the middle of the week with figures from industry and retail, which, according to Hewson, were slightly above market expectations.
Against this background, China stocks showed relative strength in an international comparison, as they did throughout June.
Interest rate and recession fears on Wall Street
Uncertainty about the extent of the forthcoming interest rate hikes in the USA weighed on the US stock exchange on Tuesday as well.
The
Dow
Jones
fell 0.50 percent to 30,364 points.
The leading index plumbed another low since the beginning of last year.
In the past four trading days, the loss has added up to almost eight percent.
The market-wide S&P 500 closed 0.38 percent lower at 3,735 points on Tuesday.
The technology-heavy selection index Nasdaq 100 held up slightly better with an increase of 0.21 percent to 11,311.69 points.
Investors' concerns about interest rates were underpinned by new data on inflation.
For example,
producer prices in May
did not rise quite as much as feared over the year.
With an
increase
of
10.8
percent
, however, inflation is still extraordinarily high.
Bitcoin is trading just above $21,000
The world's best-known digital currency, Bitcoin, was trading just above the $21,000 mark on Wednesday morning on the Bitstamp trading platform.
By the close of trading in New York, it had lost another 10 percent to $20,794.
The cyber currency Ethereum was also quoted at 1074 dollars, the lowest it was a year and a half ago.
"Fear and uncertainty are huge," said portfolio manager Thomas Altmann from the investment advisor QC Partners.
"Anything that involves any kind of risk is sold."
Bitcoin hit a record high of $69,000 in November last year
Oil prices rise slightly
Oil prices edged up slightly in early trade on Wednesday.
There were initially no strong impulses.
In the morning, a barrel (159 liters) of North Sea Brent cost US$ 121.41.
That was 24 cents more than the day before.
The price of a barrel of the US West Texas Intermediate (WTI) variety rose by 20 cents to $119.13.
Oil prices received a slight boost from new economic data from China.
Production data from industry and sales figures from retail were slightly better than expected.
The willingness of companies to invest also surprised slightly to the upside.
China is one of the largest oil consumers in the world.
For some time now, however, the country's strict corona policy has been weighing on the economy.
With news agencies