The German stock market could be in for a landmark week. Investors are currently undecided. While some investors are tending to take profits, others are considering new investments. The bottom line is that there is a lack of clear conviction and sustained risk appetite.
The smouldering uncertainties are too great. In addition to the question marks surrounding the US Federal Reserve's monetary policy, unresolved geopolitical conflicts are also weighing on sentiment.
Market participants in Germany are eagerly awaiting the official labor market report and inflation data from the United States. The reporting season, which continues to gather pace, could also provide important impetus time and again.
DAX
Geopolitical uncertainties: Conflicts in the Middle East and Greenland remain smoldering
The geopolitical risks remain simmering due to the tensions between the USA and Iran. The diplomatic struggle for a solution between the two countries continues, it was reported. In the recent past, US President Donald Trump has repeatedly threatened the leadership in Tehran with a military strike. According to media reports, Trump is also considering sending another aircraft carrier to the region. „We have a fleet on the way, and another one could follow,“ „Axios“ quotes the president as saying in an interview.
Last Friday, representatives from Iran and the USA met in the Gulf state of Oman to start new negotiations.
The Greenland conflict, which is still smouldering, should also not be forgotten. The US President and NATO Secretary General Rutte reached an agreement on Greenland at the end of January, meaning that no additional tariffs were initially imposed on some European countries. What a concrete deal on the Arctic island should look like remains open.
US labor market data ahead - economists expect job growth
Investors will be focusing on the official US labor market data (non-farm payrolls) this afternoon, which investors should scan for monetary policy signals (14:30). The data in question was supposed to be published last Friday, but was postponed due to the partial US budget dispute.
Experts estimate that a total of 70,000 new jobs were created in the world's largest economy last month, up from 50,000 in the previous month.
The separately calculated unemployment rate is estimated at 4.4 percent and thus no change compared to December.
EU GDP and US inflation data in focus on Friday
The agenda on Friday also includes data on the development of gross domestic product (GDP) at 11:00 am.
The release of fresh US consumer price data is another highlight on the agenda (14:30). Economists are expecting a January rate of 2.5%, after 2.7% in December (compared to the same month last year).
The core rate of inflation, which serves as a benchmark for the US Federal Reserve (Fed) with regard to its assessment of inflation, is estimated at 2.5% (previously: 2.6%).
Reporting season continues
Investors are focusing today on the results of the past quarter from Siemens Energy (ISIN: DE000ENER6Y0) and Deutsche Börse (ISIN: DE0005810055).
On Thursday, the focus will be on the figures from Mercedes-Benz (ISIN: DE0007100000) and Siemens (ISIN: DE0007236101).
