The DAX has made a price jump in Thursday trading and is heading for its first weekly profit after six weeks of losses in a row. The leading German stock market index once again exceeded the 15,000 mark and is currently trading at 15,140 points. The Fed’s pause on interest rates and the subsequent statements by US Federal Reserve Chairman Jerome Powell proved to be the price drivers. The market interpreted this as meaning that the end of the interest rate increase cycle had been reached. It was now possible to speculate about interest rate cuts, it was said.
Whether this is the case remains to be seen. The US labor market is likely to provide an indication of the Fed’s further course of action: The US government is publishing the Labor market data for October. The boom in the US job market has recently been unbroken despite the tight monetary policy. Experts expect that 180,000 jobs were created in October. That wouldn’t be as many as in September when there were 336,000. However, 70,000 to 100,000 jobs per month are already considered sufficient to supply the growing US population with jobs. The US Federal Reserve has raised interest rates from near zero to a range of 5.25 to 5.50 percent since the beginning of 2022 in order to curb strong inflation and cool the hot labor market.
On the corporate side, investors are looking at the DAX because with Vonovia and BMW two index values will reveal their quarterly results before the weekend: Germany’s largest real estate group could provide indications of the development of the crisis-ridden industry with its figures for the first nine months. Vonovia had to write down the value of its portfolio by around 6.4 billion euros in the first six months alone due to falling property prices nationwide. CEO Rolf Buch recently emphasized that the trend in the decline in real estate values is weakening. Perhaps Buch could also take a first look at 2024.
After its rivals Mercedes-Benz and Volkswagen, the Munich car manufacturer also presents its figures. BMW recently benefited from good business in Europe and America and sold more BMW, Mini and Rolls-Royce vehicles than in the previous year. At the same time, car manufacturers are feeling the effects of rising interest rates and the price war in China. Analysts assume that sales in the third quarter remained at the previous year’s level. However, they expect a decline in profits. You can find further weekly dates here.