FRANKFURT (dpa-AFX) - The DAX is likely to continue its previous day's losses on Wednesday ahead of the US Federal Reserve's interest rate decision. Fears of a new escalation in the Middle East conflict are causing investors to continue to shy away from risky investments. Around two hours before the start of trading on the Xetra, broker IG valued the German benchmark index at 0.4 percent lower at 23,347 points. The recently important support level of 23,400 points would thus be put to the test again.
According to Commerzbank, investors are currently also more concerned about the increasingly harsh rhetoric from US President Donald Trump. This is because the US's response is considered crucial to the further course of the war between Iran and Israel. Addressing Iran, Trump demanded "unconditional surrender," indirectly threatened Iran's supreme leader Ayatollah Ali Khamenei, and said that "we" have complete control over Iranian airspace. It remained unclear at first who Trump meant by "we."
Away from the theater of war, the focus on Wednesday evening remains on the US Federal Reserve. Its key interest rate is expected to remain unchanged in the range of 4.25 to 4.50 percent, and according to Commerzbank, the economic and monetary policy outlook is therefore the main focus. /tih/mis
