Investors are currently balancing geopolitical risks, concerns about overly high expectations for the AI industry, and the upcoming flurry of earnings reports on Wall Street. The German benchmark index remains caught in a tension between caution and optimism. Investors are on one foot on the AI brake and the other on the accelerator in anticipation of a convincing US earnings season.
DAX
US inflation in focus on Wednesday – economists expect a rate of 3.7 percent
At the heart of the trade news at mid-week are likely to be the US inflation data (14:30). According to current estimates, economists expect a September inflation rate of 3.7 percent (compared to the same month last year), after 3.4 percent in August.
For the core inflation rate, which excludes the drivers of energy and food prices, it could have risen by 0.1 percent to 2.5 percent over the same period.
US central bank may hold its feet to the fire at October meeting
The inflation development is likely to have an important influence on US monetary policy. In 15 days, the US Federal Reserve (Fed) will meet to decide on the future interest rate level. 80.6 percent of market participants currently expect a pause in interest rates and 19.4 percent an increase of 0.25 percentage points in total. The interest rate band itself currently stands at 3.75 to 4.00 percent.
US producer prices are expected to send out inflation signals – Kevin Warsh’s speech in focus
On Thursday, especially US producer prices and US retail sales are expected to provide important impetus (14:30).
A speech by Fed Chairman Kevin Warsh will be in the spotlight on Thursday night into Friday morning (05:30).
The US reporting season could provide impetus again and again
Today, Tuesday, Citigroup (ISIN: US1729674242), Goldman Sachs (ISIN: US38141G1040), Johnson & Johnson (ISIN: US47816011046, JP Morgan (ISIN: US46625H1005), UnitedHealth (US91324P1021) and Wells Fargo (ISIN: US9497461015) will present the results of their latest financial quarter.
On Wednesday, the figures from Bank of America (ISIN: US0605051046), BlackRock (ISIN: US09290D1019) and Morgan Stanley (ISIN: US6174464486) are expected to cause movement.
