Welcome to Extreme Investor Network, where we provide expert insights and analysis on all things related to the stock market, trading, and Wall Street. Today, we will be discussing the recent developments in the market, focusing on the German Factory Orders and the US Jobs Report.
German Factory Orders
The retail sales for the Eurozone are a crucial factor to consider in today’s market. Economists are forecasting a 0.2% increase in retail sales for August, following a 0.1% rise in July. Any unexpected decline in consumer spending could have a significant impact on demand-driven inflation and increase the likelihood of multiple ECB rate cuts in Q4 2024.
US Jobs Report Signal No Landing
The latest US Jobs Report has fueled demand for riskier assets, with a surprising fall in the US unemployment rate and a surge in nonfarm payrolls. This has raised expectations for the US economy to avoid a recession, which is positive news for investors.
US Market Trends
Following the US Jobs Report, the US equity markets rallied on Friday, October 4. The Nasdaq Composite Index saw a gain of 1.22%, while the Dow and the S&P 500 also experienced gains of 0.81% and 0.90%, respectively. This indicates a positive trend in the US market.
US Economic Calendar: FOMC Members in Focus
Today, investors should pay close attention to the speeches by FOMC members. Their reactions to the US Jobs Report and their insights into the interest rate path could have a significant impact on the demand for DAX-listed stocks. Any hawkish comments may push the DAX below 19,000, while positive views on the US economy and support for Fed rate cuts could drive the DAX toward 19,500.
Near-Term Outlook
The near-term trends for the DAX will be influenced by news from the Middle East, the US CPI Report on Thursday, and central bank commentary. Soft US inflation and support for rate cuts could boost demand for DAX-listed stocks, while hawkish Fed comments or higher-than-expected US inflation could reduce market risk appetite. Additionally, any escalation in the Middle East conflict could lead to a flight to safety.
Stay Informed with Extreme Investor Network
As investors, it’s crucial to stay informed with the latest news, analysis, and technical indicators to effectively manage risks in the market. Stay tuned for updates on the Middle East conflict, central bank chatter, and economic indicators to make informed investment decisions.
DAX Technical Indicators
The DAX remains above the 50-day and 200-day EMAs, indicating bullish price signals. A break above 19,250 could signal a move toward the all-time high of 19,492, while a return to 19,429 may push the DAX toward 19,750. Investors should keep a close eye on the Middle East developments, Euro area economic data, and central bank commentary for market sentiment.
In conclusion, the market outlook is optimistic, but it’s essential to monitor key indicators and events to navigate the ever-changing landscape of the stock market. Stay informed, stay ahead with Extreme Investor Network.