Minimum commencement for Dax initiated.
Headline: Moderate Inflation Forecasted for August CPI, Potentially Cautioning Fed on Rate Cut
Stocks took a mixed course on Tuesday, with the DAX rising 0.3% to 24,156 points, while the MDAX edged up by 0.1% to 31,299 points. However, Hannover Rück shares fell by more than 2% due to eroding prices in the reinsurance market, mirroring the world leader Munich Re.
Meanwhile, the US-China trade truce has been extended until November 10, averting tariffs of more than 100% on goods from each country that were due to start on Tuesday. This extension has provided impetus for the DAX's rise, according to Thomas Altmann of brokerage firm QC Partners.
Looking ahead, the much-anticipated US Consumer Price Index (CPI) for August 2025 is scheduled to be released on Thursday, September 11, 2025, at 8:30 a.m. ET. Expectations are for a continued moderate inflation pace with a month-over-month increase in the CPI of about 0.2% in August, similar to July’s increase of 0.2%.
This trend suggests the Federal Reserve may be cautious on a September rate cut, likely favoring data confirmation before easing rates. Continued inflation moderation could increase the likelihood of a cut later this year or into early 2026.
However, there is some uncertainty among investors about the quality of these data due to the recent dismissal of the head of the Bureau of Labor Statistics. The implied probability of a 25 basis point cut in September, as predicted by Commerzbank, remains high at 88%.
In other news, Sartorius shares gained more than 3% and outperformed other DAX stocks following an upgrade by Jefferies analysts, who raised their rating on the laboratory and pharmaceutical supplier to "buy" from "hold." The bank does not expect the upcoming data to further fuel speculation about a possible rate cut in September.
Elsewhere, the Euro Stoxx 50 increased by 0.2% to 5,345 points. Trump and Russian President Vladimir Putin are scheduled to meet on Friday to discuss a possible peace solution in the Ukraine conflict.
Despite reaching a record high of 24,639 points last month, the DAX's record high remains within reach, with resistance in the 24,500 point range. There is some resistance in this range, but if the market continues to perform well, it could potentially break through this barrier.
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