On Thursday, the German leading index DAX initially paid tribute to the strong gains of the past few days.
The DAX opened trading 0.2 percent lower at 16,623.89 points. The stock market barometer is currently losing 0.11 percent to 16,638.29 points.
Market participants spoke of a healthy breathing space and some consider the market situation to be overbought. The day before, the DAX had reached another record high of 16,727 points. He has expanded his year-end rally since the October low to over 14 percent.
Taking profits
The development of the overseas stock exchanges invites you to take profits on Thursday. The day before, the market-wide S&P 500 in the USA closed with slight losses at the daily low. It had not managed to climb the last few meters to a new annual high in the last few days and instead appears to be correcting again.
However, falling prices are likely to be used quickly by other market participants to enter, according to reassuring sources in the trade. The need for investment is still high and should support prices at least until expiry on Friday next week. From a technical perspective, the situation remains promising as long as the DAX no longer falls sustainably below its previous all-time high of just under 16,530. The first resistance has now emerged around 16,700 points.
All eyes on the job market in the USA
The actors focus on this US labor market: After the job vacancies on Tuesday (Jolts data) and the new jobs in the US private sector (ADP report), the weekly initial claims for US unemployment benefits are in view in the afternoon. The official November labor market report follows on Friday. It is considered groundbreaking for the US Federal Reserve’s interest rate policy. Most recently, US Federal Reserve Chairman Powell made statements that at least interest rate increases should be a thing of the past.
Interest rate cuts expected next year
Meanwhile, there has long been strong speculation on the market that interest rates will fall in 2024. This is currently continuing, with prices continuing to rise on the bond market. The fact that industrial production in Germany fell by 3.5 percent in October compared to the previous year may also contribute to this. However, the decline in industrial sales had already indicated weaker production.
In China, meanwhile, exports exceeded expectations in November. This ended a six-month decline. This supports the thesis of an economic recovery, as shown by the latest Caixin purchasing managers data.
Editorial team finanzen.net / dpa-AFX / Dow Jones