As expected, trading in Germany and on Wall Street was relaxed between the holidays, especially as the majority of investors were probably only watching the stock market from the sidelines in view of the recent public holidays. Nevertheless, Chinese economic data caused a stir in the shortened trading week. While the new elections for the future German government are casting their shadows ahead in this country, Donald Trump's official inauguration on January 20 is likely to be eagerly awaited.
DAX Chart
Source: TradingView
China data mixed - trading slow due to New Year's Eve and New Year's Day
In the night from Monday to Tuesday, and thus still in the old year, the PMI Purchasing Managers' Index for the non-manufacturing sector came in at 52.20 points, which was better than expected (50.20 points). In contrast, however, the NBS production index sent out negative signals. At 50.10 points, it is only just above the growth threshold of 50 points.
On Tuesday, trading was also closed in Frankfurt am Main due to New Year's Eve, while trading on Wall Street was still regular. However, trading around the world remained closed on Wednesday due to the New Year.
At 50.50 points, the Caixin index for production was also weaker than expected (51.70 points).
China's economy continues to groan under real estate crisis - fear of punitive tariffs by Trump
The mixed signals from China show that the domestic economy is not yet out of the woods despite the latest government support measures. China continues to groan under the smouldering real estate crisis. In addition, the economy fears the Donald Trump announced punitive tariffs on imports into the USA.
Initial claims for US unemployment benefits lower than expected - NFPs to be published next Friday
Weekly initial claims for US unemployment benefits came in significantly lower than expected at 211,000 units on Thursday (222,000 units), after a total of 219,000 claims in the previous week.
Next Friday, investors' attention will be focused on the publication of the official US labor market report (Non-Farm Payrolls). Market participants are hoping for important clues about the future shape of monetary policy. At the end of January, the Fed meets as scheduled for the first time in the new year to decide on the key interest rate.
This afternoon, investors should also keep an eye on the ISM manufacturing index (16:00).
E-car manufacturer Tesla with sales problems in important sales markets
An announcement from the ranks of the e-car manufacturer Tesla also caused a stir on Thursday. Due to weaker demand for e-cars, the company led by Elon Musk is under pressure in several sales markets. For the first time in history, fewer vehicles were sold in 2024 than in the previous year, it was reported. Sales fell by 1.1 percent to 1.79 million vehicles. As a result, the shares fell by over seven percent at one point.
Tesla Chart
Source: TradingView
