In addition to concerns about an escalation of the trade dispute between the US and key trading partners, investors are likely to be looking ahead to the publication of important US economic data. In particular, attention should be focused on the official US labor market report next Friday. It is also important to keep an eye on the ongoing reporting season.
DAX Chart
Source: TradingView
Uncertainty over customs dispute with the USA and key trading partners as a key negative factor
The ongoing uncertainty surrounding the tariff dispute is likely to continue to occupy investors around the globe. At the weekend, US President Donald Trump announced punitive tariffs on imports from Mexico, Canada and China. However, Trump postponed the announced tariffs for 30 days on Monday before they came into force. However, China responded immediately with counter-tariffs of 15% on coal and liquefied natural gas, for example.
China Caixin Index weaker than expected - ADP employment data in focus
However, the Caixin index for the Chinese service sector grew more slowly than expected (52.2 points in December vs. 51.0 points in January). The New Year holidays were cited as the reason for this.
Usually, the ADP employment data (14:15) this Wednesday afternoon give a first taste of the Non-Farm Payrolls (NFPs) on Friday.
The ISM index for the non-manufacturing sector in the US (16:00) is also likely to provide important impetus.
Bank of England decides on key interest rate - monetary policy likely to remain an issue
On Thursday, there will be fewer relevant stimuli on the agenda. Nevertheless, the Bank of England's (BoE) interest rate decision could be of interest (13:00). For the first time this year, the British monetary authority will meet to decide on the future of monetary policy.
Just last week, the major central banks, the Fed and the ECB, met to discuss the key interest rate level. While the US Federal Reserve kept its feet still as expected, the euro guardian lowered the key interest rate by 25 basis points.
Economists expect a slump in non-farm job creation in the USA
From the perspective of the economic calendar, the NFPs on Friday afternoon (14:30) could decide the weal and woe of the stock market week. According to current estimates, experts expect non-farm payrolls to increase by 170,000 units, following 256,000 new jobs in the previous month. The separately calculated unemployment rate is expected to remain at 4.1 percent, unchanged from the previous month.
Reporting season: Siemens Healthineers in focus here in Germany - All eyes on Amazon
In the current reporting season, investors can look forward to the figures from Siemens Healthineers on Thursday.
Siemens Healthineers
Source: TradingView
On the US side, Novo Nordisk is reporting today and Amazon on Thursday.
Novo Nordisk Chart
Source: TradingView
Amazon Chart
Source: TradingView
