Weekly outlook: DAX continues record hunt despite robust US labor market data

Weekly outlook: DAX continues record hunt despite robust US labor market data

According to a report by www.deraktionaer.de,
The DAX continued its record hunt on Friday and extended its record again despite surprisingly robust US labor market data. The unemployment rate was 3.7 percent, below the forecast 3.9 percent, and 199,000 new non-farm jobs were created, instead of the expected 180,000. This could lead to speculation that the Fed could delay the first interest rate cuts, which would be poisonous for the stock markets. Nevertheless, neither this data nor others could stop the German leading index and the US stock exchanges. The DAX reached a record high of around 16,783 points.

The coming trading week will focus on other important economic data, such as the ZEW economic expectations, which have shown an upward trend at a low level for four months, and the publication of US inflation figures. In addition, the Fed and ECB made their interest rate decisions this week and the purchasing managers' indices will be presented on Friday.

Experts such as Edgar Walk, chief economist at Bankhaus Metzler, do not predict any interest rate changes before Christmas, but see possible interest rate cuts from 2024. The ECB could cut its key interest rates as early as April, followed by the Fed in June. However, the central bankers' positions on speculation about interest rate cuts remain open.

In addition, the company page is coming into focus, as important company reports are due in the coming week. For example, annual figures from Carl Zeiss Meditec and Bertrandt will be published, as well as the Q3 figures from Inditex and the sales figures from H&M for the fourth quarter.

These developments could continue to impact the market and the financial industry, as speculation about interest rate cuts and the release of company reports can potentially lead to changes in market dynamics.