market report
Unclear US interest rate expectations and strong US terms do not appear to be attracting investors to the stock market at the moment. The brief recovery earlier in the week may be over.
Broker IG expects Germany’s main index to fall 0.1 percent to 23,218 points before the start of Xetra trading. Yesterday DAX ended trading with an increase of 0.6 percent to 23,239 points.
According to chart technicians at ING, the DAX recovery could extend to around 23,400 points before things get tough again. Further declines to around 23,000 points can be expected.
However, unease in the German stock market continues. Many investors are still worried that the AI bubble will soon burst. Add to this the ongoing weakness in the German economy, which currently makes equity investments seem unattractive. “There is almost no talk of economic optimism heading into 2026,” commented chief economist Thomas Gitzel of VP Bank regarding the ifo business climate index yesterday.
On the other hand, expectations of further interest rate cuts in the near future have boosted economically sensitive technology stocks in the US. Statements from central bankers are seen as the trigger: Fed Governor Christopher Waller and San Francisco Fed President Mary Daly have signaled support for a rate cut in December.
New York Fed official John Williams had indicated on Friday that a short-term rate cut was still possible given the weak labor market. “The prevailing theme at the moment is uncertainty,” said Lilian Chovin of British private bank Coutts. “We will remain in a volatile market until December 10, when we receive the Fed’s decision and related comments.”
On Wall Street, the Dow Jones index closed at 46,448 points, up 0.4 percent. The S&P 500 rose 1.6 percent to 6,705 points, and the tech-heavy Nasdaq rose 2.7 percent to 22,872 points.
Expectations of an early interest rate cut in the US also boosted Asian stock markets today. Japan’s Nikkei index rose 0.8 percent. The MSCI index of Asian shares outside Japan rose one percent.
European car markets rose for the fourth consecutive month in October. Overall, new registrations increased by 5.8 percent compared to the previous year, as announced by industry association ACEA. This figure shows an increase of 1.4 percent to almost nine million vehicles since the beginning of the year.
Electric car sales also increased from January to October. Battery-powered vehicles now have a market share of 16.4 percent, placing them in third place after hybrid cars with a third of the market share and gasoline vehicles with a good market share.
