The DAX has ended its descent for the time being. After stabilizing on Wednesday, the leading German index started trading this Thursday with a strong plus of around one percent. Investors are already looking at the central banks and the meeting in Jackson Hole that begins today.
It will be particularly exciting tomorrow, Friday, when Fed Chair Jerome Powell gives his speech. As high inflation continues to put pressure on the US Federal Reserve, Powell might offer further clues as to how much monetary policy should be tightened. In the past, statements in Jackson Hole had repeatedly moved the markets.
Meanwhile, German economic data provided some relief. Surprisingly, gross domestic product (GDP) rose by 0.1 percent in the second quarter compared to the previous quarter – the Federal Statistical Office had previously expected stagnation.
Recession, inflation and monetary policy are still the dominant themes on the stock market. Although the DAX can break away from the lows, it remains in a difficult situation. The statements in Jackson Hole might provide a little more clarity.
