Investor sentiment positive; DAX advances; Significant rise in equity holdings
Ready for a rollercoaster week in the stock market? Monday's smile is taking over, with optimism brewing among investors. As we dive headfirst into a week jammed with economic data, let's take a look at what's shaping up.
The German benchmark index, Dax, is already zooming 0.4% higher, standing tall at 19,981 points at midday. The Euro Stoxx 50 Index is following suit, surging 0.8% to a lofty 4,908 points. After a quiet New Year's Eve, investors are ready to tackle the eye-catching releases that are expected to drop this week, providing a sneak peek into the next moves of international central banks.
Among the noteworthy data, the eyes of stock traders are fixed on US economic data. Here's a lowdown on some of the key points:
- Q1 GDP (Advance Estimate): Anticipated to project 0.4% annualized growth[2], the slowest since mid-2022, mainly due to sluggish consumer spending and import surges related to tariffs[2][1].
- Core PCE Price Index (March): Forecast to show a 0.1% MoM increase, a four-month low, pivotal for Federal Reserve rate decisions[3][4].
- Non-Farm Payrolls (April): Projected to add +130K jobs (less than March's 228K) while maintaining steady 4.2% unemployment[2][1]. Job Openings are expected to reach 7.48M, reflecting a potential cooling in labor demand[3].
- ISM Manufacturing PMI: Indicates industrial activity pressure amid the impact of tariffs[1][3].
Other significant releases include the S&P Global Manufacturing PMI for Canada, Mexico, and Brazil, aimed at gauging tariff ripples and output trends after recent contractions in developed economies[1][2].
Watch out for the Mexico/Canada Q1 GDP, following stress signals from March PMIs[1][2]. We're also keeping tabs on the Thursday decision regarding the Japan BOJ Policy Rate, with a focus on maintaining yen stability[3]. Not to mention, we'll be keenly aware of the German Inflation and China PMI, both market sentiment indicators for the ECB and PBOC outlooks[3][4].
All this info will help central banks gain insights into inflation persistence, labor resilience, and growth risks, particularly guiding the Federal Reserve's June policy stance[1][4]. So strap in and get ready – it's going to be one wild week in the stock market!
- The German benchmark index, Dax, tends to follow the trend of the Euro Stoxx 50 Index, as both indices were observed surging during the midday hours of Monday.
- Investors are keeping a close eye on US economic data this week, with key releases such as the Q1 GDP, Core PCE Price Index, Non-Farm Payrolls, ISM Manufacturing PMI, S&P Global Manufacturing PMI for Canada, Mexico, and Brazil, Mexico/Canada Q1 GDP, Japan BOJ Policy Rate, German Inflation, and China PMI anticipated to drop.
- If the forecasts hold true, the US Federal Reserve's June policy stance may be influenced by these data releases, providing insights into inflation persistence, labor resilience, and growth risks.
- This week is expected to be a rollercoaster in the stock market, with the potential for major moves based on the economic data releases, particularly the US economic data. Banks and investors who are involved in investing in stocks should be prepared for significant fluctuations in the stock-market.
