Will the Dax go up again this week? According to stock marketers, there is still room for improvement. However, the corona crisis continues to smolder. And the topic of Brexit is again coming into focus. In addition, new labor market figures come from the USA.
Despite all investor skepticism, the stock market rally of the past few weeks still has room for improvement. “The title of the ‘most unpopular rally’ ever attributed to this upward movement describes the phenomenon very illustratively,” said analyst Frank Wohlgemuth from the National Bank in Essen. Many investors would have missed the previous price gains because they did not trust the roast. “But the higher the market rises, the greater the pressure to be there too.”
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On Friday the Dax at the end. Thanks to the flood of cheap central bank money and the multi-billion euro stimulus packages from governments around the world, the leading German index is around 50 percent above its March lows.
Rob Sharps, chief investor at asset manager T. Rowe Price, predicts a reset or at least a pause in the stock rally. After all, the further development of the coronavirus pandemic is unclear. His house is expecting a vaccine to be developed by the beginning of next year. However, it could take months for large parts of the population to be immunized with it. In the old week, rising infection numbers, especially in the United States, had fueled fears of a second corona wave.
Trade conflict and Brexit back in focus
Market analyst Milan Cutkovic from brokerage firm AxiTrader also mentioned the resurgent trade tensions between the United States and China and the United States and Europe as risk factors. “A dangerous cocktail for the stock markets. Investors should be prepared for major mood and price fluctuations.”
In addition, the Brexi back in the spotlight. Talks on future trade relations with the EU have stalled. Prime Minister Boris Johnson could request an extension of the transition period until Tuesday, which he has repeatedly refused. Therefore, a hard break threatens with economically serious consequences for both sides at the turn of the year. However, investors still hoped for a last-minute agreement, says economist Heal Mehta from the asset manager Legal & General.
Tension before US labor market data
The economic data are US employment figures again the highlight. They will be released on Thursday because Wall Street will be closed on Friday due to the upcoming US national holiday. After the surprising job creation last month, experts expect to create three million jobs outside of US agriculture. “In the US, the recovery that started in the previous month is likely to have continued in June,” said Commerzbank strategist Christoph Balz.
“Measured against the previous slump, however, progress is slow.” They provide a foretaste of the official data Figures from the US private employment agency ADP on Wednesday.
On this side of the Atlantic are the Barometer for the mood in European companies and among consumers (every Tuesday) on the agenda. Add to that the German retail sales (Thursday).
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