The hope of a possible year-end rally could lure investors out of their reserves again and again. Concerns about a potential overvaluation in the AI sector therefore seem to be at least temporarily out of sight and therefore out of mind for stock market participants.
Hopes for an end to the partial shutdown of the US government are likely to play a decisive role in the weal and woe of the current stock market week. Meanwhile, the current reporting season could continue to provide potential impetus.
DAX
Investors bet on a compromise solution in the US budget dispute by the end of January
The hope of a compromise solution by the end of January in the budget dispute between Democrats and Republicans is likely to remain one of the key topics of discussion on the market. The US Senate approved an interim budget at the beginning of the week. The financing of the budget should therefore be secured by the end of January.
The House of Representatives must now approve the budget and then US President Donald Trump must sign it. A total of 60 senators voted in favor of the interim budget late on Monday evening, while 40 voted against it.
It is possible that the House of Representatives could vote on the bill as early as today.
The partial US budget freeze has been in effect since October 1, making it the longest shutdown in US history.
Due to the ongoing budget dispute in the US, important US economic data is likely to continue to be delayed. US consumer price data should actually be published on Thursday and new figures on retail sales on Friday.
Economic data likely to remain scarce - numerous Fed representatives in view
However, investors should keep an eye on various Fed speeches in an economic calendar that has been generally lackluster this week. Expect Anna Paulson (Philadelphia) at 4:00 pm, Governor Christopher Waller at 4:20 pm, Raphael Bostic (Atlanta) at 6:15 pm and Trump confidant Stephen Miran and Susan Collins (10:00 pm/Michigan) at 6:30 pm.
The speech marathon continues on Thursday with Neel Kashkari (4:30 p.m./Minneapolis), Alberto Musalem (6:15 p.m./St. Louis) and Beth Hammack (6:20 p.m./Cleveland) and on Friday with Schmid (4:05 p.m./Kansas City), Lorie Logan (8:30 p.m./Dallas) and Raphael Bostic (9:20 p.m.).
Focus on Chinese economic data on Friday
Very important Chinese economic data is expected in the night from Thursday to Friday (03:00). In addition to retail sales, there will be new industrial production figures to watch out for. Both data could provide important guidance for Friday's trading.
Reporting season: marathon of figures expected from DAX companies
The focus today is on the results of the past financial quarter from Infineon Technologies (ISIN: DE0006231004), E.ON (ISIN: DE000ENAG999), RWE (ISIN: DE0007037129) and on Thursday from Siemens (DE0007236101), Deutsche Telekom (DE0005557508) and Merck (DE0006599905) as well as on Friday from Siemens Energy (DE000ENERY0).
