The last few trading days were characterized in particular by the Fed meeting and the ongoing reporting season on both sides of the Atlantic. In addition, market participants had to digest a whole host of economic data as well as various quarterly figures.
At the end of the week, investors can also look forward to the publication of the official US labor market report.
DAX
Source: TradingView
Relief and skepticism over customs deal
In the trade dispute, the EU and the USA have agreed on a tariff of 15% for most goods from Europe to the USA. This does not include aluminum and steel imports, for example, which will continue to be assessed at 50 percent. According to Trump, the EU will also buy energy worth 750 billion dollars and at the same time invest 600 billion dollars in the United States. Despite a deal, the question remains as to whether the deal could have turned out better for the eurozone.
"JOLTs" remain below expectations - German economy shrinks
The so-called "JOLTs Job Openings" on Tuesday already gave a first foretaste of today's publication of the official labor market data for the United States. At 7.437 million, this data was weaker than previously expected (7.55 million), which could indicate a cooling of the job market.
Meanwhile, it became public on Wednesday that the German economy shrank by 0.1% in April to June compared to the previous quarter, according to an initial estimate by the Federal Statistical Office. Economists had expected this decline in advance.
However, the eurozone grew by 0.1% in the same period. Zero growth was expected here beforehand.
Interest rate band in the USA remains unchanged - Jerome Powell sees "many uncertainties"
The Fed's key interest rate decision on Wednesday evening did not come as a major surprise overall. As expected, the monetary watchdog left the key interest rate unchanged for the fifth time in a row at a range of 4.25 to 4.50 percent.
Fed Chairman Jerome Powell also referred to the "many uncertainties" caused by Trump's customs policy.
German inflation does not fall below the 2.0 percent mark - NFPs round off trading week
In Germany, the development of German inflation caused a stir on Thursday, which surprisingly remained at 2.0% in July (compared to the same month last year). Experts had previously expected the inflation rate to fall to 1.9%.
This Friday afternoon, market players will also be focusing on the so-called Non-Farm Payrolls (NFPs), which will be tapped for monetary policy clues (14:30). In addition to the unemployment rate, the development of average hourly wages will also be monitored.
Last but not least, the ISM Purchasing Managers' Index for the manufacturing sector could also provide important impetus (16:00).
Investments in AI are clearly paying off - Microsoft and Meta with strong results
The efforts of Microsoft (ISIN: US5949181045) and Meta (ISIN: US30303M1027) in the field of AI have clearly paid off. Both companies were able to present surprisingly strong quarterly figures last Wednesday. "I look forward to creating a personal superintelligence for everyone in the world," said Meta CEO Mark Zuckerberg.
Thanks to strong advertising revenues, the Group was able to increase its turnover in the second quarter by 22 percent to 47.52 billion dollars.
Meta Platforms
Source: TradingView
Microsoft was able to benefit increasingly from the growing demand for computing power. "Cloud and AI are the driving force behind the transformation of companies in all industries and sectors," said Satya Nadella, CEO of the Group. Revenue climbed by 25 percent to 46.7 billion dollars.
Microsoft
Source: TradingView
Dow Jones Industrial Average Index
Source: TradingView
