Two weeks after the US election, disillusionment has returned to the German stock market. Investors are increasingly fearing Trump's restrictive economic policy against the eurozone and China.
The quarterly figures of AI giant NVIDIA, which are eagerly awaited on Wall Street, are also likely to be eagerly awaited in Frankfurt am Main. Meanwhile, geopolitical uncertainties could increasingly drive investors again.
DAX Chart
Source: TradingView
Ukraine-Russia conflict: Geopolitical tensions could drive investors again
Russian President Vladimir Putin has signed an updated nuclear doctrine and once again increased geopolitical uncertainties at the beginning of the week. According to the document, the threshold for a nuclear strike has been lowered. According to the Ukrainian president, Ukraine recently attacked Russian territory for the first time with US missiles, which have a longer range.
German producer prices fall for the 16th time in a row
Producer price data for the Federal Republic of Germany was already on the agenda on Wednesday morning. According to the latest figures, the decline that has been ongoing for over a year has slowed down. Manufacturers of industrial products paid an average of 1.1% less for their goods than a year ago. Economists had expected a fall of 1.10 percent compared to the same month last year, following a fall of 1.40 percent in September.
In October, consumer prices, including the drivers energy and food, stood at 2% (compared to the previous month). Producer prices are also seen as an important guideline with regard to the development of inflation.
US data to provide focus on Thursday - Purchasing managers likely to give an economic assessment
While Wednesday has less relevant data overall from the perspective of the economic calendar, the focus is likely to be all the more on Thursday.
Tomorrow, investors will be looking at important US economic data, particularly on the other side of the pond.
The weekly US jobless claims are usually on the agenda at 14:30. The so-called Philly Fed manufacturing index could also cause movement at the same time.
On Friday, new data on the growth rate of gross domestic product will first come into focus here in Germany (08:00).
Purchasing Managers (HCOB) for Germany (09:30) and the equivalent for the Eurozone (10:00) are also published.
In the afternoon, S&P Global Purchasing Managers are on the agenda. Consumer sentiment data (Reuters/Uni Michigan) will round off the trading week at 16:00.
NVIDIA must deliver - stress test for AI rally
This afternoon, investors will be paying particular attention to the publication of NVIDIA's figures, which will be released after the US stock market closes. The company has exceeded analysts' expectations in each of the past eight quarters. The results are likely to be a stress test of the extent to which the recent AI rally should be evaluated.
