At over 17,000 points, the DAX 40 was trading within reach of its previous record of 17,033 points on Wednesday morning. Following last week's Fed meeting and the US labor market report, this week could tend to be a little quieter. From the perspective of the reporting season, however, there are likely to be a number of important stimuli.
DAX 40 Chart on a weekly basis
Source: Tradingview
INDUSTRIAL PRODUCTION IN GERMANY FALLS FOR THE SEVENTH TIME IN A ROW - US MONETARY POLICY REMAINS A TOPIC OF CONVERSATION
However, investors suffered a setback in terms of industrial production on Wednesday morning. Total production in the manufacturing sector fell by 1.6% compared to the previous month, which also represents the seventh consecutive decline. In December, production fell more sharply than at any time since March.
In the second half of the week, numerous speeches by Fed representatives are likely to continue to attract attention.
Fed Board member Kugler will be speaking today, Wednesday, from 17:00. In addition to Barkin (Richmond Fed/ 6:30 pm), Governor Bowman is also likely to provide impetus (8:00 pm).
Barkin will speak again on Thursday (14:30/ 18:05) and Logan on Friday (Dallas-Fed/ 19:30).
Just last weekend, Fed Chairman Jerome Powell signaled no hurry with regard to a possible interest rate cut. "The smartest thing we can do is give it some time and see if the data confirms that inflation is coming down to two percent in a sustainable way," Powell said in an interview with the CBS news program "60 Minutes".
CHINA INFLATION COULD FALL FURTHER - FOCUS ON GERMAN INFLATION RATES ON FRIDAY
In addition to significant inflation rates from China, new consumer price data is likely to cause movement in Germany on Friday.
Prices in China are expected to fall further (-0.5%) compared to the same month last year. However, consumers may continue to hold back on purchases, which could have a negative impact on the country's economy.
The situation on the Asian stock markets is currently tense. Recently, investors have been relying on more support from government funds to remedy the country's structural problems.
The final inflation rates for the Federal Republic of Germany will also be published on Friday at 08:00. Experts expect a year-on-year increase of 2.9% for January, compared to 3.7% in the previous month.
REPORTING SEASON CONTINUES IN THIS COUNTRY
Following the figures from Siemens Energy and Deutsche Börse (after close of trading) today (Wednesday), the reporting season continues with Siemens AG on Thursday.
The energy technology group Siemens Energy generated a profit after tax of €1.6 billion in the first quarter of fiscal 2024 (as at the end of September) after a loss of €598 million in the previous year.
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