FRANKFURT (dpa-AFX) - Midweek trading saw the upward momentum on the German stock market noticeably slow down. While tensions in the Middle East continue to ease, positive cues from New York provided only limited tailwind for local markets following the previous day's rally. U.S. stocks had edged higher after European markets closed, buoyed in part by comments from Federal Reserve Chair Jerome Powell on monetary policy. The tech-heavy Nasdaq 100 narrowly missed setting a new record high.
At Wednesday's open, the DAX initially rose by up to 0.3 percent, but its gains quickly dwindled to just 0.08 percent, settling at 23,659 points. As was the case the previous day, the index remained below its 21-day moving average--a popular short-term trend indicator.
The MDAX most recently advanced by 0.27 percent to 30,038 points. The Eurozone benchmark index, the EuroStoxx, gained 0.2 percent in value.
According to Landesbank Baden-Württemberg, the prospect of calm returning to the Middle East conflict was swiftly priced in by financial markets the previous day. Powell also signaled that the U.S. central bank would continue to take a wait-and-see approach regarding interest rate policy. However, should inflation data come in weaker than expected or the labor market deteriorate, the Fed could move to cut rates more quickly, as was noted following Powell's remarks on Tuesday evening.
