The past few trading days have been characterized in particular by hopes of a deal in the trade dispute between the US and major economies such as the EU. However, it remains to be seen whether a last-minute deal will be reached by July 9 at the latest. In view of the robust US labor market data, the fantasies of interest rate cuts in the US are likely to have lost momentum. On the other hand, recession worries in the largest economy may have diminished somewhat.
However, Wall Street in the United States will be closed today (Friday) due to the Independence Day holiday.
DAX
Source: TradingView
German inflation falls to 2.0 percent - ISM manufacturing index in the USA better than expected
The preliminary inflation data for the Federal Republic of Germany attracted attention on Monday. With an inflation rate of 2.0 percent, the preliminary expectations (2.2 percent) were undercut. In May, the inflation rate in Germany was 2.1%.
The ISM index for the manufacturing industry in the USA came in at 49 points on Tuesday, better than expected (48.8 points) after 48.5 points previously.
The ADP employment data stood out in the middle of the week, which caused a stir with minus 33,000 jobs in the private sector. The forecast was for 95,000 units, after 29,000 jobs in May.
US labor market data much better than expected - unemployment rate falls to 4.1 percent
The official US labor market data (non-farm payrolls) was published on Thursday due to today's public holiday in the USA. A total of 147,000 new non-farm jobs were created, significantly more than economists had expected (110,000), after a total of 139,000 jobs in the previous month. In this context, the separately calculated unemployment rate fell to 4.1 percent, compared to 4.2 percent in May. A rate of 4.3 percent was expected.
At 50.80 points, the ISM Purchasing Managers' Index for the services sector, like its counterpart for the manufacturing sector, was also better than expected (50.50 points), following 49.90 points in the previous month. This puts the index back above the growth threshold of 50 units.
Producer prices in the eurozone continued to fall in May, albeit at a slower rate than in previous months. In the industrial sector, they fell by 0.6% (compared to April), after -2.2% in April and -1.7% in March.
Dow Jones Industrial Average Index
Source: TradingView
