The main topic of conversation on the German stock market is likely to remain the upcoming US presidential election next Tuesday. However, in view of the uncertainty surrounding the future formation of the government, investors could avoid the really big risk. In addition to the publication of important economic data on both sides of the Atlantic, investors should keep an eye on the current reporting season.
DAX Chart
Source: Tradingview
German gross domestic product grows surprisingly - ADP data and US GDP in focus
New figures on Germany's gross domestic product were published this morning, which surprisingly increased by 0.2% from July to September compared to the previous quarter. Economists had previously expected a decline of 0.1%.
A first taste of the official US jobs data (non-farm payrolls) will be provided by the so-called ADP data this afternoon (13:15). A total of 115,000 new non-farm jobs are expected, compared to 143,000 in the previous month.
The growth rate for US GDP, which may have risen by 3.0% compared to the previous quarter, after 3.0% in the same period of the previous year, is also likely to be of great interest.
China data could provide important guidance - US price data should send important inflation signals
Investors should also expect important data from China in the night from Wednesday to Thursday. In addition to the NBS PMI production index, the counterpart for the non-manufacturing sector will be published (02:30).
Attention is also likely to focus on German retail sales (08:00), EU consumer prices and the "PCE deflator" for personal consumption expenditure.
On Friday, the Caixin Purchasing Managers' Index for production could move first (02:45).
Economists expect a sharp slump in the US job market - stock market heavyweights present figures
The highlight of the week should be the official US labor market report (13:30). A significant slowdown in the job market is expected. After a total of 254,000 new non-farm jobs were created in September, only 115,000 units are expected to have been created in October, according to forecasts.
The ISM manufacturing index (15:00) is also expected to provide important impetus.
The current reporting season could always provide important impetus. Today, investors will have to deal with the figures from BASF and Volkswagen. The chemical company BASF dampened expectations due to a challenging economic environment, but confirmed its earnings targets for 2024.
Due to weak demand from China and high costs, Volkswagen's profits plummeted in the third quarter.
In the USA, the Meta and Microsoft figures are on the agenda today. Amazon and Apple will follow on Thursday.
