Swelling Middle East risks, an unclear monetary policy path and critically questioned AI assessments keep the DAX trapped in a fog and leave a clear sense of direction lacking. A Golden Autumn can still not be spoken of. Investors continue to act with a tight grip on their handbrake, driven by interest rate concerns and the ambitious expectations in the AI sector. Without a firm point of reference, investors in a tension between geopolitical risks and interest rate expectations as well as AI fantasies lack a clear thread. The reporting season also provided repeated, ambiguous signals in the interim.
DAX
Chinese economic data provide a boost
As early as the beginning of the week, various economic data from the heart of Germany provided some light. The annual growth rate of GDP was 4.5 percent higher than expected (4.4 percent). Industrial production also performed better than expected (0.5 percent) compared to the previous year. Last but not least, retail sales also increased by almost double the expected level with 1.1 percent.
ZEW index for economic sentiment falls for the first time in five months
For the first time in five months, the ZEW index for economic sentiment has fallen again. In October, it fell by 6.6 points to 28.1 units. Among the reasons cited were high energy prices and weak consumption. „The German economy is slowly emerging from stagnation, but the recovery is not self-sustaining,“ said ZEW President Achim Wambach.
Weekly first-time applications for U.S. unemployment benefits fall surprisingly
Last week’s initial weekly applications for U.S. unemployment benefits remained below expectations at 194,000 units (200,000), as data published on Thursday afternoon showed. At the beginning of the month, the official U.S. nonfarm payroll report for September was weaker than expected. The development of the U.S. Federal Reserve (Fed) labor market plays a central role in monetary policy decisions. Next week, Wednesday, the U.S. central bank will decide on the future level of the key interest rate.
Focus on purchasing managers – opportunities both on and off the Atlantic
The purchasing managers from S&P Global for the German sector gave a mixed picture overall. While the index for the manufacturing sector performed better than expected, the overall index as well as the service sector fell below expectations.
The European side was unable to meet all expectations.
On Friday, investors will also look at the counterparts for the US side (15:45).
Dow Jones Industrial Average Index
