DAX prepares for groundbreaking trading week The DAX, Germany’s main stock market index, is gearing up for an important week of trading. After a tumultuous period of economic uncertainty, investors are eagerly anticipating the potential impact of upcoming political and economic events on stock prices. One of the key factors driving this anticipation is the ongoing trade dispute between the US and China. The two countries have been locked in a trade war for over a year, with tariffs and threats of further escalation causing volatility in global markets. Any developments in this situation are likely to have a significant effect on the DAX. In addition, the upcoming EU parliamentary elections and Brexit negotiations are also expected to impact the DAX. With the potential for major shifts in political power and trade policies, investors are closely monitoring these events and adjusting their strategies accordingly. Overall, this promises to be a crucial week for the DAX and its performance will be closely watched by both domestic and international investors.

Last Updated: 22. Januar 2024By

So far, things have been moving slowly on the trading floor in Frankfurt. Since the beginning of the year, the DAX has not made any major leaps, overall the barometer has moved around 1.3 percent in the negative in the first 3 weeks of the year. After the record rally at the end of the year with a new all-time high of just over 17,000 points, investors took a breather after the holidays. Most recently, the DAX closed the weekend at 16,555 points.

ECB with first interest rate decision of the year In the new trading week, however, this could change. There are numerous events on the financial calendar that are expected to provide new impetus. The hopes for imminent interest rate cuts in the eurozone have largely fizzled out. Inflation is still well above the 2 percent target of the central bankers. According to its own information, the European Central Bank expects to reach the target value again next year.

Until then, interest rate cuts are likely to be moderate, if at all, and more cosmetic in nature to calm the nerves of investors. However, this is not expected for now: On Thursday, the interest rate decision will be made at the first ECB meeting of 2024. Observers expect that the central bankers, led by ECB President Christine Lagarde, will leave the interest rate untouched for the time being.

Important economic data in the middle of the week Last year, the ECB raised the interest rate to a record level in the eurozone at a rapid pace. Since September, the interest rate has been unchanged at a level of 4.5 percent. The hoped-for effect – a decrease in the inflation rate – is gradually becoming noticeable, with base effects also playing a role here: because prices had already risen sharply the previous year, the further increase is lower in percentage terms, but is still noticeable in consumers‘ wallets.

The decision of the European bankers is likely to be influenced by fresh economic data, some of which are also expected this week. On Wednesday, the sentiment barometer for the industry and service sector in Germany is on the agenda. On Thursday, the highly anticipated Ifo business climate index follows. Here, after a tentative recovery at the end of the year, the mood unexpectedly darkened again. Market participants are therefore eagerly awaiting the latest developments.

Earnings season also kicks off in Frankfurt Finally, individual stocks are once again in focus for investors. While the earnings season is already in full swing in the USA, things are slowly starting to pick up in Germany in the coming days. The first two DAX companies to present their quarterly results are SAP and Sartorius.

In the USA, some heavyweights with fresh balance sheets are also in focus. On Tuesday, Verizon, 3M, Johnson & Johnson, Procter & Gamble and Netflix will present their numbers, among others. On Wednesday, AT&T, Tesla and IBM will follow, before on Thursday, giants such as Intel, Visa or American Airlines provide a glimpse into their books.

Alaska Airlines is also on the stock calendar for Thursday with quarterly figures. The airline made headlines worldwide at the beginning of the year when a door-sized fuselage part came loose during climb in a factory-new Boeing 737 Max. The passengers landed safely after an emergency landing, but the damage to Boeing’s image is enormous. The US aviation authority FAA issued a temporary flight ban for the type, affecting 171 aircraft.