DAX price still below record levels - US labor market data causes uncertainty in trading

DAX price still below record levels - US labor market data causes uncertainty in trading

According to a report from www.tagesschau.de, the DAX remains below its record level of 17,000 points at the start of the week. Due to the uncertainty on the stock market regarding the further course of Wall Street, the DAX is moving between 16,880 and 16,972 points and is currently struggling with its closing price on Friday, which was 16,918 points. US jobs data has added to this uncertainty as it raises concerns about new inflationary pressures and makes possible interest rate cuts by the US Federal Reserve unlikely. The experts emphasize that the US economy is stable, in contrast to the situation in Germany and Europe. The artificial intelligence business, which has a major impact on markets in the US, is missing in Europe, leading to further uncertainty.

In addition, a stronger dollar is weighing on the euro as expectations of an interest rate cut by the US Federal Reserve are falling and foreign trade data for December in Germany have caused disillusionment in the market. These data show that the global economy is too weak to generate momentum. In contrast, some companies such as Delivery Hero and Vodafone were able to achieve their own targets and report good business figures for 2023.

As a financial expert, based on these facts, I see a continued uncertain situation on the markets, which is reinforced by the lack of dynamism in the global economy and the stability of the US economy. The prospects for interest rate cuts by the Federal Reserve are slim, adding to market uncertainty. This could lead to continued sideways movement or moderate losses as investors continue to weigh positive labor market data against falling interest rates.