The DAX is expected to start stable on Thursday, March 20, 2025, after investors took profits the previous day. In the Asian markets, losses are prevalent as investors respond to fluctuating economic signals. The Nikkei 225, the leading index in Tokyo, fell by 0.25 percent, closing at 37,751.88 points. The sentiment was echoed in other major markets, with the Shanghai Composite down 0.38 percent, finishing at 3,413.14 points, and the Hang Seng index in Hong Kong suffering a more substantial drop of 1.62 percent to end the session at 24,368.67 points.
On the corporate front, all eyes are on Micron Technology, which is preparing to release its quarterly figures following the close of US markets today. As a key player in the semiconductor industry, Micron's performance is highly anticipated by analysts and investors alike.
In significant labor news, Deutsche Bank announced it would cut approximately 2,000 jobs this year. This decision is part of a broader strategy to streamline operations and reduce branch numbers as the bank adapts to current economic conditions.
The economic landscape in the United States is also drawing attention, as the Federal Reserve has announced it will keep the key interest rate stable, maintaining it within the range of 4.25 to 4.5 percent. This decision is aimed at fostering economic growth while balancing inflation concerns. The Fed's caution reflects ongoing uncertainties in the global economy.
Moreover, the People's Bank of China has opted to keep its reference interest rate for bank loans unchanged, indicating a hold on monetary policy amidst a volatile market environment. This stability is intended to support economic activities for both companies and households.
Meanwhile, Germany's RWE has made headlines with its announcement of a significant investment reduction. The company plans to cut its mid-term investment target by 10 billion euros as it reassesses its goals in renewable energy and flexible power plants over the next six years. This shift highlights the company’s response to evolving market dynamics and investment strategies.
On a more upbeat note, Nemetschek is expressing optimism for the current fiscal year, despite the overall restrained economic environment. The firm is determined to continue its growth trajectory as it navigates these challenging times.
As the markets react to these developments, oil prices are exhibiting slight recovery in early trading on Thursday. Driven by escalating conflicts in the Middle East, which are heightening supply risks, crude oil prices are experiencing upward pressure. The next WTI future gained 0.36, trading at 67.52 dollars, while Brent crude rose 0.35 to reach 71.13 dollars around 7:00 AM (CET).
Lastly, currency markets are witnessing a slight dip for the Euro against the US Dollar. On Thursday morning, the Euro is trading lower at 1.0895 US dollars.
The convergence of these economic indicators suggests a complex and evolving financial landscape as investors brace for further developments.
