FRANKFURT (dpa-AFX) – The German stock market should start a recovery attempt on Thursday after the clear losses in the middle of the week. It is beneficial that the US House of Representatives approved the laboriously negotiated deal in the debt dispute. This takes the United States a big step closer to averting an impending last-minute default by the government. In addition, after the recent rather dismal economic signals from China, an industrial sentiment indicator signaled a possible reversal towards growth in the Middle Kingdom.
The X-Dax signaled an hour before the start of trading for the Dax (DAX 40) an increase of 0.4 percent to 15,726 points. The day before, the leading index had reached its lowest level in seven weeks and ended May with a loss of around 1.6 percent. The euro zoneThe leading index EuroStoxx 50 (EURO STOXX 50) is expected to rise by 0.5 percent on Thursday.
The US House of Representatives voted in favor of legislation that would suspend the debt ceiling until 2025 while curbing government spending over the next two years. Now the Senate has to approve the plan, and President Joe Biden has to sign the bill into law so the government doesn’t run out of money.
In China, the purchasing managers’ index for the manufacturing sector (Caixin index) rose above the growth implying level of 50 points in May. Economists had expected an unchanged value at the April level of 49.5 points. The current value certainly does not predict an imminent economic boom, but it does not point to dramatic economic problems either, explained analyst Thomas Altmann from QC Partners.
The German inflation rate from Wednesday will be followed by that for the euro zone this Thursday. “Today’s value will certainly have a significant influence on the ECB’s next interest rate decision. After prices in Germany fell by 0.1 percent in May but rose by 0.3 percent in Italy, it will now be interesting to see where the euro zone as a whole is headed “Said Altman.
The experts at Helaba also referred to the US initial jobless claims due in the afternoon and the labor market report from the private service provider ADP. These are likely to point to the official US job market report for May, which is scheduled for Friday. The ISM index for the US manufacturing sector, which has been in declining territory in recent months, could also attract attention.
Among the individual values, the shares of SAP (SAP SE) could react negatively to the recent business development of the US competitor Salesforce. In the pre-market business on the Tradegate trading platform, the Walldorf-based software group’s titles fell by 0.6 percent. Retailers criticized Salesforce’s only confirmed sales forecast for the current financial year. The company’s expenses also came in higher than analysts had expected last quarter.
The shares of HUGO BOSS rose by 1.3 percent on Tradegate. Strong quarterly figures from the US department store chain Nordstrom, which is in the upper price segment, could provide support here. Nordstrom is sometimes a welcome indicator of investor sentiment towards Hugo Boss, stressed a broker./edh/mis
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