In the run-up to the publication of important US inflation data, investors on the German stock market are initially taking it easy. The ECB central bank meeting scheduled for Thursday is also likely to cast its shadow in the meantime. This means that monetary policy on both sides of the Atlantic should continue to dominate the market. However, the recent TV duel between Kamala Harris and Donald Trump provided less impetus. Nevertheless, the US presidential election campaign could increasingly become a decisive influencing factor for the markets.
DAX Chart
Source: Tradingview
Core rate of US inflation expected to remain unchanged according to estimates - investors nevertheless hope for a decline
According to the latest estimates, economists expect the August inflation rate (including energy and food) to be 2.6% compared to the same month last year, after 2.9% in July. The core rate of inflation, which the Fed considers to be decisive, may have been 3.2% in the same period and thus unchanged compared to July.
ECB could cut interest rates again on Thursday - Christine Lagarde in view
Thursday is likely to be dominated by the key interest rate decision of the European Central Bank (ECB) (14:15) and the subsequent press conference with President Christine Lagarde (14:30).
The ECB may turn the interest rate screws down again (0.25 percentage points). Interest rates in the eurozone currently stand at 4.25%.
Investors will also be looking for economic clues in the form of US producer prices and initial jobless claims (14:30).
Focus on Michigan consumer confidence on Friday - Fed meeting likely to cast a shadow ahead
New consumer sentiment data (Michigan) could provide impetus on Friday (16:00).
Following the publication of new US inflation data and the ECB meeting, the highlights for the current week should be over. However, it is possible that the findings could still have a significant impact on Friday and the week beyond.
One week from today, the US Federal Reserve (Fed) will meet to decide on the future key interest rate level. Investors are hoping for the long-awaited turnaround in interest rates in the USA. It remains to be seen whether the US monetary watchdog will be persuaded to make an XXL rate hike (50 basis points).
