Weak economic data in the USA gives investors hope that interest rate hikes will end - market report November 3, 2023

Weak economic data in the USA gives investors hope that interest rate hikes will end - market report November 3, 2023

According to a report from www.tagesschau.de, the New York stock market is assuming an end to interest rate increases due to weaker economic data. This boosted the stock market and the DAX was also able to successfully complete a strong week. Investors are hoping for an end to interest rate hikes in the USA. The Dow Jones index rose 0.66 percent, while the S&P 500 rose 0.94 percent and the Nasdaq rose 1.38 percent. The prices of US government bonds also rose significantly. The latest US labor market figures showed robust but slowing growth. The unemployment rate rose slightly and hourly wage growth weakened. Experts predict that the US Federal Reserve will no longer raise interest rates. The mood in the US services sector has also deteriorated. Due to the weaker economic data, hopes have increased that the Fed has reached the interest rate plateau and will no longer raise interest rates. The DAX closed moderately higher and the MDAX rose by 1.65 percent. Experts assume that the interest rate peak in the USA may have been reached. Expectations for quarterly reports from large German corporations could further support the mood. The hope of an interest rate peak in the USA has also strengthened the euro and oil prices have fallen. There were some major movements in the DAX, including Siemens Energy shares rising and Vonovia shares also being in high demand. Car maker BMW made more profit than expected in the third quarter, while Volkswagen imposed a temporary hiring freeze at key locations. The coming week could further underline the positive mood on the German stock market if the quarterly reports meet expectations.

The impact of these developments could continue to impact the stock market and the financial industry. Hopes for an end to interest rate hikes in the US could lead to a rise in stock prices as lower interest rates give companies the opportunity to take out cheaper loans and increase their investments. This could in turn lead to economic growth. The positive quarterly reports from large German corporations could also strengthen investor confidence and further drive the market.

However, it is important to note that geopolitical risks and economic data may continue to influence the market. Negative developments in industrial and retail trends in Europe could lead to uncertainty and weigh on the market. We should also keep an eye on weakening sentiment in the US services sector, as this could signal a slowdown in the economy.

Overall, the article points to a positive mood on the stock market, with the possibility of an interest rate peak in the USA and good quarterly reports from large German companies. However, the exact impact on the market and the financial industry remains to be seen and should be monitored further.