DAX investors continue to find themselves in a field of tension consisting of both monetary policy and geopolitical question marks.
The focus is also likely to be on the reporting season, which could provide important impetus. Investors will be focusing in particular on US inflation data on Friday, which could provide monetary policy clues.
DAX
Economic uncertainty, geopolitical tensions and monetary policy uncertainties are likely to remain for the time being
At midweek, the DAX is showing no clear direction. The reporting season could become a reality test for the recent optimistic expectations. Investors should not be blinded by strong quarterly figures if the tectonic risks beneath the surface continue to increase or remain unresolved. The combination of economic uncertainty, geopolitical tensions and monetary policy uncertainties could catch up with market participants at any time.
Due to the ongoing partial shutdown in the United States, there is still a delay in corresponding economic data in the US, meaning that stimuli from overseas are likely to remain scarce.
Purchasing managers on both sides of the Atlantic expected - focus on US inflation
However, the first estimates for purchasing managers (HCOB) for the manufacturing industry, the service sector and „overall“ are expected on Friday (10:00 am). The counterparts for the eurozone will follow at 11:00 and for the US (S&P Global) at 15:45.
However, the eagerly awaited US consumer price data (2:30 p.m.) could be one of the main factors determining the weal and woe of the stock market week. This rate is seen not least as a guideline for the US Federal Reserve (Fed) with regard to its assessment of inflation. The core rate of inflation is also expected at the same time, which excludes the drivers energy and food. Meanwhile, US consumer price data is expected at 14:30.
Economists expect a consumer price rate of 3.1% for October (compared to the same month last year), after 2.9% in August. According to estimates, the core rate is likely to remain unchanged at 3.1% in the same period.
Finally, consumer confidence (University of Michigan) is on the daily agenda at 16:00.
Reporting season starts in Germany - impetus from the USA still conceivable
In the reporting season, investors will be looking ahead to the publication of SAP's figures for the past financial quarter (ISIN: DE0007164600) this Wednesday evening after the close of trading. On Friday, car manufacturer Porsche will present its figures (ISIN: DE000PAG9113).
Investors in the US are also likely to focus on the figures from Tesla (US88160R1014) today and from Ford (US3453708600) and Intel (ISIN: US4581401001) on Thursday.
