Frankfurt (Reuters) - The guesswork surrounding the course of the major central banks made Dax investors cautious on Thursday.

Ahead of the interest rate decision by the European Central Bank (ECB), the leading German index lost 0.2 percent to 17,677 points, moving further away from its recent record high of 17,816.52 points. Investors were not expecting a change in the key interest rate in the eurozone. However, they were hoping that the central bank meeting would give them an indication of whether the first rate cut in June, which is currently priced in, is a realistic option for the ECB, said portfolio manager Thomas Altmann from asset consultant QC Partners.

The analysts at Helaba consider June to be a suitable date for a first interest rate cut. By then, it should have become clear that the disinflationary trend is also continuing in core prices and that wage development is continuing to weaken, the experts write in a commentary. The deposit rate, which banks receive from the ECB for parking surplus funds and which is the benchmark interest rate on the financial market, is currently at a record level of 4.00 percent. The key interest rate stands at 4.50 percent.

In the USA, too, the topic of a turnaround in interest rates remained on everyone's lips following the latest statements by Federal Reserve Chairman Jerome Powell. Although he left the timing of an easing of monetary policy open, he emphasized that the Fed has this important change in monetary policy on its radar for 2024. The dollar index was slightly weaker on Thursday at 103.21 points. By contrast, the price of gold reached a new record high: the precious metal rose by 0.6% to 2161.09 dollars per troy ounce at its peak. Gold has already gained around six percent since the beginning of February - the prospect of lower interest rates is making precious metals more attractive.

On the corporate side, the publication of numerous balance sheets kept investors on their toes. Despite a higher dividend, Continental was unable to score points with investors, with the shares of the automotive supplier losing almost three percent in the DAX. According to market experts, operating profit and sales for 2023 fell slightly short of expectations. Brenntag also failed to impress investors with its figures. The chemicals trader was hit by subdued demand last year. Operating profit and sales declined. The shares fell a good two percent in the Dax.

LUFTHANSA SHARES STRUGGLE TO FIND A DIRECTION

In the MDax, Hugo Boss experienced a pitch-black day. The fashion group's shares plummeted by almost 20 percent at times after an outlook that fell short of expectations spooked investors. Hugo Boss expects significantly slower growth in the coming years and is questioning its medium-term sales target.

Lufthansa shares found it difficult to find a direction after the presentation of the balance sheet and fluctuated strongly back and forth. At midday they were trading 0.3 percent firmer. After strong growth last year, the airline wants to keep profits at a high level despite rising costs. "The fact that Lufthansa staff strikes are taking place again today at the same time and that these are certainly not likely to be the last in the coming weeks is dampening the mood somewhat," said Jürgen Molnar from RoboMarkets. The trade union Verdi has again called on ground staff to strike on Thursday, and the flight attendants of the main airline Lufthansa could also go on strike soon.

On the Copenhagen stock exchange, encouraging initial study results for the weight-loss drug Amycretin helped Novo Nordisk to a fresh record high. The shares of the Danish pharmaceutical company rose by 5.8 percent to 898.50 Danish kroner at the peak. Test subjects had lost 13.1 percent of their weight after twelve weeks, the manufacturer of the slimming injection Wegovy announced at its capital market day. The shares of competitor Eli Lilly fell by two percent in pre-market US trading.

(Report by: Daniela Pegna, edited by Sabine Ehrhardt. If you have any questions, please contact our editorial team at berlin.newsroom@thomsonreuters.com (for politics and the economy) or frankfurt.newsroom@thomsonreuters.com (for companies and markets).)