2023-06-02 18:03:41
Dhe shortened stock market week was marked by the agreement on a new debt ceiling in the United States. After the compromise between US President Joe Biden and Speaker of the House Kevin McCarthy, there was repeated interference. This led to twitches on the stock exchanges.
In Germany, the Dax index jumped three times over the 16,000 point mark over the course of the week, which it was unable to maintain in the weak stock market month of May. With a minus of 1.6 percent, the index had developed weaker than in March and April.
First, members of the House of Representatives announced their opposition to the rule, which aims to ensure that the state should remain able to act, despite the fact that it imposed rules to contain spending more than a century ago. Nevertheless, the majority of the parliamentary chamber approved the agreement in the middle of the week. That calmed the tense minds, but it did not cause such strong swings on the stock market.
Shock waves have threatened
Because the only slowly falling inflation rate and the expectation of rising interest rates continue to dominate discussions among traders and investors. In addition, the risk that one of the chambers could actually object to the compromise was classified as very low.
Politicians have long been aware of the consequences: If the state had no longer been able to act, it could have triggered severe shock waves on the markets. On Friday, the Senate was the last institution to approve the agreement with a comfortable majority before President Biden can then sign and explain the law.
There was also no positive impetus from China, the major sales market for western industrialized countries. The manufacturing purchasing managers’ index remains below the 50 mark, from which growth is indicated. The index value even fell slightly.
Acute interest rate worries had recently been alleviated somewhat by the economic situation. But in the European Central Bank there had been tendencies to take more vehement action against inflation, as the recently published minutes showed. Further rate hikes are likely to follow after the last one was 0.25 percentage points weaker. US labor market data, which was slightly weaker than expected, are also being closely monitored.
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