Investors are likely to continue to focus on the US presidential election today, Wednesday. In the early morning, there are signs of a possible victory for Republican Donald Trump, to which market participants are reacting positively in the first instance. In particular, the prospect of an increase in the budget deficit could inspire the stock markets. In addition to the developments surrounding the future US government, investors should keep an eye on the US Federal Reserve meeting and the ongoing reporting season.
DAX Chart
Source: TradingView
Trump is clearly ahead - stock markets prepare for the Republican's candidacy
Even though the US election campaign has not yet been finalized, the stock markets are already celebrating Donald Trump's future candidacy. According to media reports, the US Republicans have already secured a majority in the Senate. At the same time, Trump is hoping for a majority in the House of Representatives so that he cannot be blocked by a lack of majority in future decisions.
Christine Lagarde in view - US Federal Reserve meets on Thursday
Today, Wednesday, a speech by ECB President Christine Lagarde could also attract interest (15:00). Overall, all economic data excluding the Fed meeting is likely to play a subordinate role in the current trading week due to the US election.
The Fed meeting continues on Thursday. The key interest rate decision is usually expected at 20:00. 30 minutes later, Fed Chairman Jerome Powell will address the public.
The CME Group's "Fed Watch Tool" currently signals a 97.5% chance of a downward interest rate move of 25 basis points. The current interest rate range is 4.75 to 5.00 percent.
Investors are hoping for important clues about the final meeting of the year on December 18 at the press conference, which will be scrutinized for monetary policy signals in the usual manner.
Bank of England also likely to lower interest rates
The Bank of England (BoE) will also meet on Thursday to decide on the future of monetary policy (13:00). The BoE is also expected to cut interest rates by a quarter of a percentage point, in this case to 4.75%.
On Friday, despite an eventful trading week, consumer sentiment data from Michigan is also on the agenda (16:00).
Figures in the premier stock market league - reporting season as a potential source of momentum
Commerzbank, which is being targeted by Italy's Unicredit, already presented its figures today (Wednesday). The result was negatively impacted by a lower net interest income and increased risk provisions for loan defaults.
Car manufacturer BMW, meanwhile, was confronted with problems caused by a Continental brake system and market weakness in China.
Fresenius was able to exceed analysts' estimates with a solid quarterly result. For the current year, the company expects organic growth of six to eight percent (previously: four to seven percent).
Henkel and Vonovia also presented their figures, which should put investors in a positive mood.
On Thursday, Munich Re, Daimler Truck, Rheinmetall and Heidelberg Materials will present their business figures for the past quarter.
