For the first time in its history, Germany's leading index has reached the 22,000 point mark. Investors are likely to focus their attention on fresh US inflation data this afternoon. The issue of the trade dispute will therefore take a back seat for the time being. The focus is likely to remain on the ongoing reporting season, which could continue to provide impetus.
DAX Chart
Source: TradingView
Trump announces new punitive tariffs on aluminum and steel imports
The trade dispute between the USA and other economic nations has visibly lost its edge. Over the weekend, Trump announced punitive tariffs on aluminum and steel imports, for example. In the previous week, the trade conflict between the USA and China in particular had already increasingly driven investors and kept risk appetite manageable. However, investors should always be prepared for the uncertainties caused by Donald Trump.
US inflation data cast a shadow ahead - Powell speech again in view
Investors around the globe are eagerly awaiting the publication of new US price data today (14:30). According to current estimates, the January rate could be 2.90% (compared to the previous month) and thus as high as in December. However, investors are likely to focus on the development of the so-called core rate, which excludes the drivers energy and food. This rate could weaken by 0.1 percentage points to 3.10 percent in the above-mentioned period, which should encourage general interest rate cut fantasies.
Another speech by Fed Chairman Jerome Powell is scheduled for later in the day (16:00). Investors are expecting monetary policy hints in this context.
Powell had already testified before the congressional committee in Washington on Tuesday. It was said that it was not the central bank's job to comment on tariff policy. He also signaled that the Fed was in no hurry to lower interest rates further.
German inflation rates in focus on Thursday - attention likely to turn to EU GDP on Friday
On Thursday (08:00), investors should keep an eye on the final inflation rates for the Federal Republic of Germany. Compared to the same month last year, a rate of 2.3 percent is expected, after 2.6 percent in December.
US producer prices are likely to provide important inflation clues this afternoon (14:30).
However, the last trading day of the week will be dominated by the publication of the EU gross domestic product growth rate. A second estimate could result in zero growth (compared to the previous quarter), after 0.4% previously.
Retail sales for the United States (14:30) round off the trading week from the perspective of the economic calendar.
Siemens Energy presents figures - reporting season as a potential driver
The figures from Siemens Energy already made investors prick up their ears at the start of the day. The electronics group was able to shine with full order books and thus further boost its growth. In addition, the bottom line is positive for the new year, it said.
On Thursday, the focus will be on Siemens' preliminary figures for the past quarter.
Siemens Energy
Source: TradingView
