What’s next? – DAX 01.11.17

The DAX futures were 0.03 percent into green territory on Wednesday at 13,226.5 points, with investors returning to the market after celebrating Germany’s Reformation Day holiday.

There are no relevant economic reports from Germany today or the Eurozone scheduled for the day. Attention will be directed to a block of data from the US and the interest rate decision.

Traders will closely monitor the release of ADP nonfarm employment change for October at 12:15 GMT, in anticipation of Friday’s employment data from the US Labor Department.

Also, Markit’s manufacturing PMI for October will be released as of 13:45 GMT. The Institute for Supply Management will present its own PMI fifteen minutes later. Analysts are forecasting readings of 54.5 and 60.0 points respectively.

The Federal Open Market Committee will reveal its statement at 18:00, but there are no monetary policy changes expected. Interest rates are likely to stay between 1.00-1.25 percent.

Yesterday, Eurozone’s consumer price index stood at a 1.4 percent year-over-year growth rate, a tick below analysts’ expectations. However, the third-quarter gross domestic product grew 2.5 percent in the twelve months through September, outperform an estimated 2.1 percent.

The unemployment rate also cheered market participants as it dropped to 8.9 percent from a previous reading of 9.0 percent. Market labor conditions are improving inside the EU.

The German benchmark ended higher on Monday at 13,229.57, adding 0.09 percent. Technology, food & beverages and retail components contributed most to gains, while insurance, chemicals and software pushed to the downside.

The best performers of the session were Volkswagen, which added 2.57 percent to 155.90, Prosiebensat 1 Media rising 1.94 percent to 29.945 and Siemens up 1.66 percent to 122.50.

The worst performers of the session were Linde, which dropped 1.90 percent to 185.40, Deutsche Boerse easing 1.50 percent to 88.68 and Deutsche Bank down 1.48 percent to 13.95.

Fort Financial Services