DAX investors remain unimpressed by the latest developments in France. The political quake in the neighboring country has short legs - at least in this country. As long as the crisis does not have any concrete negative consequences for the eurozone, developments are likely to remain politically explosive but economically predictable.
The economic data calendar promises important impulses this evening with the transcripts of the latest Fed meeting and a planned speech by Jerome Powell on Thursday.
DAX
Developments in France remain dynamic - investors nevertheless remain calm
Investors are evidently keeping their cool when it comes to France. On Monday, France's prime minister announced his resignation after just four weeks in office, triggering a government quake. According to media reports, French President Emmanuel Macron has now also come under pressure. The deadline for Prime Minister Sebastien Lecornu to find a solution to the current crisis with the parties expires this evening.
However, investors currently appear to be prepared to skillfully ignore political risks, possibly until there are no signs of acute contagion effects on the economy or financial markets.
After the absence of non-farm payrolls: Fed speeches in view
In view of the government shutdown in the US, the US labor market data was not published last Friday. In this context, speeches expected from various Fed representatives are likely to be heard all the more. This Wednesday, for example, Alberto Musalem (15:20), Michael Barr (15:30) and Austan Goolsbee (16:00), Lorie Logan (19:15) and Neel Kashkari (20:15) will have their say.
Federal government's fall projection to be presented today - FOMC minutes expected in the evening
The German government's fall projection is also likely to be exciting today. The Reuters news agency learned about the figures in advance. According to the report, the government is expecting a noticeable upturn in the coming years. GDP is set to rise by 1.3 percent in 2026 and 1.4 percent in 2027, after 0.2 percent this year.
This evening (20:00), the focus will be on the so-called FOMC minutes. Investors are likely to expect monetary policy hints in this context.
Three weeks ago, the US Federal Reserve changed the key interest rate level for the first time this year, adjusting it downwards by 25 basis points to a range of 4.00 to 4.25 percent.
A speech by Jerome Powell could decide the weal and woe on Thursday (2:30 pm).
On Friday, preliminary data (University of Michigan) on consumer expectations in the USA should provide some impetus (16:00).
