In the current trading week, investors are focusing in particular on developments in the ongoing trade dispute. Following the recent easing of tensions in the tariff conflict between the US and China, the markets are betting on a further rapprochement. The publication of important economic data on both sides of the Atlantic is likely to provide potential impetus.
DAX
Source: TradingView
Further rapprochement in the trade dispute between the USA and China conceivable
The tariff dispute between the USA and the People's Republic of China continues to keep investors on edge. However, this time it is good news in trade relations between the world's two largest economies that has allowed market participants to breathe a sigh of relief. At the beginning of the week, US Trade Representative Greer announced a breakthrough in negotiations with Beijing. Further developments will have to be awaited in the coming days. It is also possible that an easing of tensions with other important trading partners could be announced.
Just last week, the trade deal between the USA and the UK caused investors around the globe to breathe a sigh of relief.
EU GDP and US producer prices in focus on Thursday
On Thursday, new data on EU gross domestic product (11:00) and US producer prices (14:30), which could send monetary policy signals, will be the first focus of attention in Germany. Retail sales for the United States at the same time are also likely to be of interest.
On Tuesday, US consumer prices were already lower than expected (2.4%) at 2.3% (compared to the same month last year), following 2.4% in March. In this context, investors' interest rate cut fantasies on the other side of the Atlantic may have gained momentum.
Powell speech could generate monetary policy stimulus on Thursday afternoon
A speech by Fed Chairman Jerome Powell will be in the spotlight from 2:40 pm.
The trading week is rounded off by preliminary consumer sentiment data from the University of Michigan (16:00).
Investors in Germany also have to digest the figures from Daimler Truck, E.ON, Porsche and Brenntag in the current reporting season.
