FX.co ★ DAX Edges Lower

On Wednesday, the DAX index in Frankfurt decreased by 0.4%, closing near 23,500, similar to declines seen in other European markets. This downturn followed Federal Reserve Chair Jerome Powell's cautious remarks, which deterred investor risk-taking. Powell emphasized the importance of a balanced approach by the US central bank, considering both inflationary pressures and a weakening job market in future interest rate decisions. In addition, geopolitical tensions were reignited after former US President Donald Trump indicated a significant policy change, suggesting the possibility of Ukraine regaining all its territory from Russia. Economists and investors will closely monitor Germany’s Ifo Business Climate index for further data insights. In the equities market, Deutsche Bank led the losses with a drop of over 2%, followed by declines in companies such as Daimler Truck, Brenntag, Siemens Healthineers, Infineon Technologies, Merck, and Adidas. Conversely, defense sector shares fared well in response to Trump’s comments, with Hensoldt seeing a 3.5% increase, Renk gaining 2.9%, and Rheinmetall rising by 1.4%.