Low US inflation, positive sentiment, Europe trending upwards
Low US inflation, positive sentiment, Europe trending upwards

15 November 2023 – The surprisingly low US inflation data has amazed analysts positively. At the same time, good data comes from Europe. And the German stock index DAX reacted with a price firework. In addition, the mood in the German economy brightened noticeably in November.

Low US inflation surprises analysts positively

Inflation in the USA fell more sharply in October than analysts had previously expected on average. Consumer prices were 3.2 percent higher than in the same month last year, compared to 3.7 percent in September. 

Even more important for the Federal Reserve’s monetary policy decisions is likely to be the fact that the core inflation rate – which excludes energy and food prices – unexpectedly fell by 0.1 percentage points to four percent in October.

As slightly higher inflation data had been expected for the most part, the markets reacted noticeably positively immediately after the data was published.

Europe: Economy and shares are trending upwards

Things are looking up again in Europe. The number of people in employment in the eurozone rose by 0.3% in the third quarter of 2023 compared to the previous quarter. The increase was thus above market expectations of 0.1%. 

The ZEW Economic Sentiment Indicator for Germany, Europe’s largest economy, also rose by 10.9 points to 9.8 points in November 2023, significantly exceeding market expectations of plus 5.0 points. European equities started the week with a gain after recently taking a breather. 

German DAX with price fireworks after US inflation data

Unexpectedly low US inflation triggered a veritable fireworks display on the German stock market on Tuesday. The DAX gained 1.8 percent to 15,614 points and closed higher than at any time since September 20. In the second tier, the MDAX and TecDAX rose even more strongly.

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