FRANKFURT (dpa-AFX) - Investors are likely to keep their distance from German stocks on Thursday. Following the Fed's expected interest rate decision and given the continuing lack of clarity regarding the US position in the Middle East war, there are no arguments in favor of buying stocks. Fears of an escalation of the war remain present.
Two hours before the start of trading on Xetra, broker IG estimated the DAX at 0.2 percent lower at 23,273 points on Thursday. Below 23,262 points, the German benchmark index would mark a new six-week low after slipping below an important support level of 23,400 points the previous day.
It remains unclear how the US will decide in the war between Iran and Israel. Statements by US President Donald Trump show that he still does not want to commit to a clear course of action. "We want total, complete victory," he said at the White House.
Meanwhile, the Fed has not responded to Trump's demands and has left the US key interest rate unchanged. The central bank leaves little doubt about two foreseeable consequences of Trump's tariffs: prices will rise and growth will slow. Further analysis of this will not be available until Friday, as trading in New York is closed for a public holiday. The Dow Jones Industrial Average is currently down slightly. /tih/jha/
