The DAX benchmark index was stable on Wednesday prior to the conclusion of the Federal Reserve meeting later during the day.
The U.S. Federal Reserve, which will be ending its two-day meeting will be the focus of the global markets in the coming trading session. Although most of the market expects an announcement of another interest-rate hike due to Janet Yellen’s comments during the recent conference held in Jackson Hole, the market will be focusing on the central bank’s view regarding their monetary plans as well as the direction that they are about to take regarding the trillion dollar bonds unwinding or tapering.
The Federal Open Market Committee is also set to show the dot plot or their plans or forecasts regarding possible changes and updates to their interest rates in the future.
The DAX started the week higher due to lesser concerns surrounding the geopolitical tensions between the United States and North Korea who recently fired a ballistic missile in Japan over the past week. This led to not just Asian shares slipping but global stocks as well.
Most European shares were also higher on Monday with the financial sector driving most of the gains sending the market to a two and a half year high supported by a weaker U.S. dollar as well as expectations of a decline in the inflation rate soon.
German stocks traded higher by Wednesday as the dovishness of the European Central Bank is expected along with the upcoming announcements from the Federal Reserve later during the day.
The DAX rose by 0.08% to 12,572 during the late afternoon trading. The index also traded higher during the last trading session. Despite trading mostly on a flat sentiment, German stocks such as Deutsche Telekom (DE:DTEGn), which is a German telecommunications company, traded 3.10% higher.
This coming week, Germany will be holding elections that will determine the country’s next chancellor. This will be the focus of investors in the coming week as the probability of German stocks reacting to the poll results is highly expected. However, any huge political news that will largely move the German market is not widely expected. Should the euro move largely, the German stock index is expected to be affected as well.