One week after the US presidential election, reactions on the stock markets on both sides of the Atlantic have been mixed. While investors in Germany tended to flee for fear of a protectionist Trump administration, Wall Street continues to hope that the president-elect will lead to a flourishing economy. Meanwhile, a rise in US inflation caused less uncertainty than expected. The balance sheet season also promised important impetus.
DAX Chart
Source: TradingView
German inflation at 2.40 percent - US inflation picks up as expected
The final inflation rates for the Federal Republic of Germany were on the agenda on Tuesday, which came in as expected at 2.40% (compared to October 2023), unchanged from the previous month.
As expected, inflation in the USA was 2.60% (year-on-year) and therefore significantly higher than in the previous month (2.40%). In this context, interest rate cut fantasies may have lost momentum. According to the CME Group's "Fed Watch Tool", the chance of a rate cut of a quarter of a percentage point at the meeting on December 18 is just 58.9%, compared with 82.5% the previous day.
Producer prices for the United States also came as no surprise. Compared to the previous month, prices rose by 0.2%, after 0.1% in September.
Jerome Powell dampens interest rate cut expectations - China data mixed
However, a speech by Fed Chairman Jerome Powell late on Thursday evening caused uncertainty. Powell said at a Dallas Fed event that the Fed was in no hurry to cut interest rates due to sustained economic growth, a robust labor market and inflation above the target of 2 percent.
There are likely to have been mixed signals from China. While Chinese industrial production failed to meet expectations, the retail sector clearly exceeded forecasts. The contrasting developments are likely to underline the current challenges facing the Chinese economy. Despite the support measures for the economy, difficulties obviously remain in getting the economic engine back up to speed.
This afternoon, investors can also look forward to new US retail sales data (16:00).
Cost-cutting measures at Conti bear first fruits - Bayer causes irritation
Continental's quarterly figures showed that the savings course is beginning to bear fruit. In the third quarter, the Hanover-based company was able to increase its adjusted operating profit by around a third to 873 million euros.
Reinsurer Hannover Re, meanwhile, raised its profit forecast due to a mild hurricane season.
Bayer's figures caused considerable irritation on Tuesday. The Group presented a slump in earnings in the third quarter and impairment losses in the billions, partly due to the agricultural business.
Infineon suffers from car manufacturers - Siemens Energy achieves turnaround
Semiconductor manufacturer Infineon is facing sluggish demand from car manufacturers. In addition, it remains to be seen how the new US government under the leadership of Donald Trump will affect future business.
The Munich-based insurance group Allianz is aiming for a new record profit this year. "Natural disasters have once again put Allianz's financial and operational resilience to the test, tests that we have successfully passed," said Allianz.
The figures from Siemens Energy also caused a stir. After billions in losses in recent years, the energy technology group has now managed to turn things around. A profit of more than one billion euros was posted for the past fiscal year. Gas turbines and grid technology are in demand all over the world, it was said.
