Investors are likely to focus on the Fed meeting in particular this trading week. On Friday, the US labor market figures should provide important impetus. Last but not least, it is important to keep an eye on the ongoing reporting season with Amazon and Apple.
DAX Chart
Source: Tradingview
EU core inflation turns out to be stronger than expected - interest rate cut fantasies could dampen
According to initial estimates, the core rate of EU inflation was 2.9% in July, which is higher than experts had predicted in advance. In this context, the fantasies of interest rate cuts could lose momentum again. On June 6, 2024, the ECB cut the key interest rate by 0.25 percentage points for the first time again after a total of ten increases.
ADP data provide first foretaste of non-farm payrolls - Fed meeting in the evening in view
A foretaste of the US labor market data is usually provided this Wednesday afternoon by the so-called ADP data at 14:15.
The Fed meeting is likely to be the highlight of the week. While the key interest rate decision is expected at 20:00, the subsequent press conference with Jerome Powell from 20:30 onwards will be tapped for monetary policy clues.
Even if no change in the interest rate is expected, Powell could provide important signals for the September meeting. Market participants do not expect the long-awaited turnaround in interest rates until the next meeting.
Important US economic data is on the agenda on Thursday with the ISM manufacturing index (16:00).
US labor market could lose momentum - US stock market heavyweights present their figures on Thursday
The official US labor market report (Non-Farm Payrolls) will be published on Friday at 2:30 pm. Economists expect non-farm payrolls to increase by 175,000 units, following 206,000 new jobs in the previous month. Consequently, the unemployment rate could remain at 4.1 percent.
However, a look at the development of average hourly wages should also be of interest. An increase of 0.3% is expected compared to the previous month, following 0.3% in June.
Siemens Healthineers is growing less strongly than hoped in the face of tough business in China. At Adidas, the end of the collaboration with rapper Ye had a negative impact on the US business. However, the company was able to benefit from important soccer tournaments in Europe and Latin America.
On Thursday, the figures from BMW, Deutsche Post and Merck will provide impetus.
In the US, heavyweights Amazon and Apple present their figures. The crypto industry giant Coinbase also presents its figures.
Last but not least, Linde will present its figures on Friday.
