While the German stock index clearly outpaced the indices on Wall Street last year with its rally to 17,000 points, it was only the Nasdaq and, on Friday, the S&P 500 that caught it again. The record hunt in New York prevented Frankfurt from slipping further after reaching its annual low, but there were no big jumps possible for the DAX. Even if the increase at the start of trading today is significant, the index remains trapped in its ping-pong zone between 16,500 and 16,780 points and the stock market lights are yellow.
We provide the market commentary from Jürgen Molnar, capital market strategist Robomarketsbefore.
However, the potential in both directions is high in a week with many interesting dates. This week, Netflix and Tesla, the major technology companies in the USA, are starting their reporting season. In Germany, the DAX heavyweight SAP is opening its books. Companies’ figures and outlook could also have an effect on overall capital flows. If the numbers from US companies turn out to be better than those from domestic representatives, this would be confirmation of the recent stronger performance of the stock exchanges in the USA. On the other hand, if German companies continued to present themselves as being resilient to the economic downturn in Europe, there would be a chance of a reverse effect. Investors like to look for alternatives when new records are set and stock markets appear to be hot.
Things will get even more interesting on Thursday with the first meeting of the European Central Bank this year. However, when it comes to interest rates, this meeting is likely to have very little potential for surprises. March as the first date for a key interest rate cut in the eurozone is off the table at the latest with President Lagarde’s words in Davos. This leaves the question of whether more concrete statements will be made towards summer or autumn of this year.
2024-01-22 14:13:46
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