Investors are likely to be eagerly awaiting the publication of new US inflation data this afternoon, which could provide clues for monetary policy. It remains to be seen whether the latest results in the trade dispute between the US and China will entice investors out of their reserves and thus further boost the stock markets. At the end of the day, uncertainty about the future course of the tariff conflict could possibly catch up with market participants after all.
DAX
Source: TradingView
Musk rows back: Slight easing of tension in dispute between Tesla boss and the US President
Trump recently regretted his statements against US President Donald Trump and thus rowed back somewhat in the conflict with the Republican. "I regret some of my statements about President Donald Trump last week," said the Tesla boss on his Platform X. "They went too far."
Last week, the two had exchanged blows in public. This was triggered by Donald Trump's planned tax law, which would increase the US debt mountain by a further trillion (2.4 trillion dollars).
Framework agreement for trade between the USA and China
After two days of negotiations, the world's two largest economies were able to agree on a framework agreement for trade. "We have agreed on a framework to implement the Geneva Consensus and the discussion between the two presidents," said US Secretary of Commerce Howard Lutnick late on Tuesday evening. However, this is unlikely to be enough for a major breakthrough on customs issues. It remains to be seen whether the trade disputes will catch up with investors at the end of the day.
Economists expect inflation to rise - focus on core inflation rate
Investors are expecting consumer price data from the United States today, Wednesday, at 14:30. The May rate is expected to come in at 2.50 percent (compared to the same month last year), after 2.30 percent in April.
According to economists, the core rate of inflation, which excludes the drivers energy and food, could have risen by 2.9 percent in the same period (previously: 2.8 percent).
US producer prices could send inflation signals on Thursday - German inflation expected on Friday
Thursday's US producer price data (14:30) should also be exciting. This data can provide important inflation signals.
From an economic calendar perspective, the week is rounded off by the final inflation rates for Germany (08:00) and the preliminary consumer sentiment data from the University of Michigan (16:00).
