FRANKFURT (dpa-AFX) - Investors became more cautious about German stocks on Wednesday, just before the US interest rate decision. After its recent recovery rally, the DAX fell by 0.13 percent to 24,130.14 points. From its November low of below 23,000 points, it had recovered by more than five percent in recent weeks. It also managed to return above the 24,000-point mark, which now provided support during the course of the day.
Before the US Federal Reserve's interest rate decision was announced in the evening German time, the MDAX also failed to gain momentum on Wednesday. However, the index of medium-sized German stocks managed to end the day slightly higher. It closed 0.01 percent higher at 29,732.65 points.
An interest rate cut of 0.25 percentage points is considered a foregone conclusion in the US and has already been priced in by the financial markets. This makes the monetary policy outlook for the world's largest economy all the more exciting. According to experts at CMC Markets, a possible Christmas rally is in the hands of Fed Chairman Jerome Powell. Market analyst Luis Ruiz from the online broker recalled that a year ago, Powell had already weighed on the markets with his restrictive rhetoric. /tih/jha/
