Germany’s major index DAX Corpus Christi fell 0.33 percent to 13,440.43 points. In the course ahead, he gave way more. Several times the figure of 13,100 fell. The daily low went down to 13,007.91. At the end of trading, the stock market’s barometer fell by 3.31 percent to 13,038.49 points.
Fed raised interest rate
The Fed raised US interest rates by 0.75 percentage points the night before, slightly higher than most experts initially expected. But some thought even more was possible, the biggest rate hike since 1994. The Fed is fighting the highest inflation in 40 years.
Fed chief trying to balance Jerome Powell’s tightening Monetary policy And calm markets: “Don’t expect 75 basis point increases to become commonplace,” he said. This statement in particular had a positive effect on share prices in New York. For example, Goldman Sachs economist Jan Hetzius recently expected two such moves in a row.
rate increase also in switzerland
The Swiss National Bank (SNB) meanwhile surprisingly raised key interest rates significantly. The central bank raises the prime interest rate by 0.50 percentage points from zero to 0.25 percent. As such, monetary watchers seek to counter inflationary pressures. Interest rate increases were previously considered possible but not given, especially since inflation in Switzerland had recently risen, but not as much as in other regions of the world.
Bank of England Follows Fed and SNB
As expected, the British central bank further tightened its monetary policy. The Bank of England said the key interest rate would rise 0.25 percentage points to 1.25 per cent on Thursday after a meeting of the MPC monetary policy committee in London. The move was what analysts expected.
As recently as Tuesday, the DAX had continued its descent below the 13,300 mark due to inflation and bearish fears and had lost nearly ten percent within a few days since its interim high on White Monday. This sell-off was accompanied by a huge rate move price. There is panic in the market, as the current tax shows once again.
Editorial Office finanzen.net/dpa-AFX/Dow Jones Newswires
Image Source: PhotoSTS/Shutterstock.com, Julian Mazer for Finanz Verlag
