The current reporting season on both sides of the Atlantic is increasingly becoming an influencing factor for the DAX. Investors here in Germany are also likely to take note of the poor business figures from Tesla and Google. In contrast, the political turbulence in the USA has subsided somewhat. In addition to the publication of important economic data, the main focus will be on the US price data on Friday.
DAX Chart
Source: Tradingview
Joe Biden withdraws from US election campaign and proposes US Vice President Harris
Joe Biden's latest withdrawal from the US election campaign is likely to keep investors around the world busy. The current US President announced late on Sunday evening that he would no longer be taking part in the race for the White House. However, Biden spoke out in favor of the current Vice President Kamala Harris.
Purchasing managers disappoint in Germany - US data in focus
The HCOB purchasing managers for the Federal Republic of Germany and the eurozone were all weaker than expected on Wednesday morning. Consequently, the economic outlook is likely to deteriorate further.
In the afternoon, the focus will be on the new S&P Global Purchasing Managers for the manufacturing and service sectors in the US (2:30 pm). Investors are hoping for a ray of hope in the United States.
Ifo index likely to brighten slightly - focus on US economic data
On Thursday morning, the ifo Business Climate Index is likely to attract attention (10:00 a.m.). The widely observed economic barometer could provide important impetus. An index level of 89 points is expected, compared to 88.6 points recently.
On the US side, durable goods orders are on the agenda this afternoon. Experts expect an increase of 0.4%, after 0.1% in May (year-on-year).
The GDP growth rate for the second quarter is likely to be of even greater interest. Compared to the previous quarter, an increase of 1.9% is expected (previously: 1.4%).
PCE data could lose momentum - German companies continue to present their Q2 results
Friday, meanwhile, will be dominated by the publication of new PCE data (core rate) at 14:30. This data is likely to provide an important indication of future inflation trends. If economists have their way, the price index could have risen by 2.5% year-on-year, slightly less than in the previous month (2.6%).
The core inflation rate in the USA recently stood at 3.3% (May: 3.4%).
The final Michigan consumer sentiment data could also provide impetus from the USA (16:00).
In the reporting season, the focus today is on the figures from Porsche and Deutsche Bank. On Friday, Mercedes-Benz and BASF will present their figures for the past quarter.
