For the first time in history, the DAX has climbed above the 25,000-point mark. Today's jump above the 25,000-point mark is a clear signal that the domestic stock market barometer is showing remarkable strength despite global uncertainties. Obviously, the stock market year begins seasonally with fresh capital and more than a pinch of optimism for an economic recovery, which are likely to have provided additional support for today's jump.
Hope for more stable oil prices - Geopolitical legs in the conflict between the USA and Venezuela are shorter than expected
Hopes of more stable or falling oil prices are likely to have fueled the momentum. In addition, the geopolitical legs of the conflict between the USA and Venezuela appear to be shorter than expected, which is fueling the risk appetite for shares.
However, investors should not be blinded by the record high. In particular, the uncertainty surrounding geopolitical trouble spots around the globe hangs over investors' heads like the sword of Damocles.
In addition to the latest developments in the conflict between the USA and Venezuela, investors are focusing primarily on the official US labor market data (non-farm payrolls), which are expected on Friday. After the turn of the year, traders are likely to gradually return to the trading floor.
DAX
US attack on Venezuela loses its terror for the time being
The US attack on Venezuela has startled investors around the globe, including in Frankfurt am Main. In the night from Friday to Saturday, the United States attacked the country with the world's highest oil reserves and took head of state Nicolás Maduro into custody. It has now been made public that Donald Trump wants to intervene directly in Venezuela's oil industry. According to Trump, the South American country will supply the USA with between 30 and 50 million barrels of sanctioned oil. The revenue is to be controlled by the US President himself.
„This oil will be sold at its market price, and the money will be controlled by me as President of the United States of America to ensure that it is used for the good of the Venezuelan people and the United States.“.
ADP data and „JOLTs“ could provide first foretaste of NFPs
This afternoon, the ADP employment data (14:15) and the „JOLTs“ (Jop Openings and Labor Turnover Survey) are expected to provide a first foretaste of the official jobs data (16:00).
Also at 16:00, the ISM Purchasing Managers' Index for the service sector will be published, which investors should monitor for economic indicators.
Economists expect a slowdown in job creation compared to the previous month - but unemployment rate could fall
Consequently, the so-called „Non-Farm Payrolls“ are on the daily agenda on Friday (14:30). Economists expect non-farm payrolls to increase by a total of 55,000 units, following a total of 64,000 jobs in the previous month. The separately calculated unemployment rate is expected to come in at 4.5 percent (previously: 4.6 percent). The development of average hourly wages should also be noted.
Preliminary consumer sentiment data from the University of Michigan rounds off the trading week (16:00).
