The German stock index Dax came under pressure on Friday. The comments by the president of the regional US Federal Reserve Bank in Minneapolis the day before had raised concerns on Wall Street that there would be no interest rate cuts this year.

Federal Reserve member Neel Kashkari, currently a non-voting member, had said there might not be a rate hike in 2024 if inflation remained high and growth remained strong. This caused major losses on Wall Street on Thursday. In this context, the afternoon's US labor market report will likely be examined more closely.

The German benchmark index lost 1.18 percent to 18,186 points

Shortly after the start, the main German index lost 1.18 percent to 18,186 points. The 21-day line, which signals the short-term trend, continues to form resistance. It currently operates at around 18,100 points. The MDax fell 1.22 percent to 26,935 points on Friday morning. The EuroStoxx 50, the main index of the euro region, lost 1.18 percent to 5,011 points.

The fact that a Federal Reserve banker would emphasize the importance of fighting inflation is not surprising. However, most market participants still expect the first major interest rate cut to come in the summer. Even more attention will now be focused on the US government's labor market data for March. Investors hope to draw conclusions about the timing of the first interest rate cut in the US. Here's how a strong labor market can boost inflation.

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