Following Donald Trump's announcement to extend the existing ceasefire in the conflict with Iran, investors in the German stock market are remaining cautious for the time being. While the prospect of a sustained de-escalation could provide signals of relief, concerns are likely to persist that a military escalation could return at any time.
From the perspective of the economic calendar, impulses could repeatedly arise, especially from the ongoing earnings season, in addition to economic data.
DAX
Investors hope for a second round of talks between the USA and Iran
The US has, on its part, extended the ceasefire shortly before the ultimatum expired. However, the blockade of Iranian ports is to be maintained, it was stated. Thus, Trump will refrain from attacks at Pakistan's request until the Iranian leadership makes a proposal and talks are finalized, he stated on his own platform „Truth Social“.
Whether there will be a second round of talks between Washington and Tehran remains open. The first round had ended inconclusively the weekend before last.
The Strait of Hormuz, which is currently being blocked from both sides, remains in view. Iran is currently effectively preventing any ships from passing. The US blockade is specifically aimed at freighters that are heading to or departing from Iranian ports.
Investors are particularly interested in the associated inflation concerns, which could force both the US Federal Reserve and the European Central Bank to raise their interest rates. The Fed plans to decide on the future key interest rate level in the USA as early as next Wednesday.
Purchasing managers in the spotlight on both sides of the Atlantic
On Thursday, initial estimates for various purchasing managers„ indices (S&P Global) will be on the agenda in this country (9:30 AM), for example, for the services, manufacturing, and “composite" sectors. The respective counterparts for the Eurozone (10:00 AM) and the US (3:45 PM) should also be noted.
Weekly initial jobless claims in the US are usually released around 2:30 PM.
Reporting Season in Focus: SAP to Report Quarterly Results After US Market Close on Thursday
On Thursday, April 23, SAP (ISIN: DE0007164600) will present its results for the past fiscal quarter after the US stock markets close. Investors can therefore only react to the aforementioned figures on Friday.
ifo Index Highly Anticipated on Friday – Consumer Sentiment (Uni Michigan) to Round Off Trading Week
The ifo Business Climate Index is expected on Friday at 10:00 AM. The Munich-based ifo Institute surveys around 9,000 executives monthly. The most important barometer for the German economy could therefore provide important momentum.
The trading week will be rounded off by figures on consumer confidence (Uni Michigan) from the United States at 4:00 PM.
