DAX 40 Moves Higher as Investors Assess Robust Earnings and Fed Hikes

  • 📰 DailyFX
  • ⏱ Reading Time:
  • 50 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 23%
  • Publisher: 63%

United States News News

United States United States Latest News,United States United States Headlines

The DAX began the week in the green as markets digested more corporate earnings, while we have the US CPI later in the week. Get your market update from zvawda here:

Europe’s bond investors, caught between a central bank raising rates for the first time since 2011 and the prospect of a recession are braving some of the wildest swings on record by some metricsThe yield on Germany’s benchmark bond has oscillated 10 basis points on almost 80 days this year something that happened only once in 2021. Hedging costs across“Rates volatility has seen an explosion in activity,” said Phillip Pearce, an associate at Validus Risk Management.

The fallout is palpable. Investors say it’s becoming more difficult to execute orders in some corners of the market. European companies are reluctant to issue debt or buy prohibitively expensive protection against price swings. While volatile conditions are what traders usually dream of, some market players are hesitating to take on larger positions, creating a self-amplifying cycle of deeper swings as liquidity dries up.

Since April, the German two-year yield has ended the day 20 basis points lower three times and 20 basis points higher onceFocus for the week will be on the US CPI figure due out on Wednesday whilenvestors will also get to hear from several Fed speakers, with policymakers under renewed pressure to deliver a third 75 basis point rate hike at their upcoming meeting in September.

We also have the final inflation numbers from Germany being released on Wednesday which could give more direction for investors moving forward.Source: TradingView

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 305. in US

United States United States Latest News, United States United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

European Stocks Set to Climb as Traders Assess Earnings, Economic DataEuropean markets are set to advance cautiously as investors continue to monitor corporate earnings and key economic data points, assessing recession risks.
Source: nbcsandiego - 🏆 524. / 51 Read more »

S&P 500 gives up earlier gain and is flat as Nvidia warning hits tech stocksInvestors shifted focus to a key inflation report this week for more clarification about the Fed's next move at its policy meeting in September.
Source: CNBC - 🏆 12. / 72 Read more »