DAX index news: Can the DAX maintain the momentum above the 20,000 point mark?

Downward revisions in the PMI could further increase expectations of multiple interest rate cuts from the ECB, potentially leading to a reduction in EUR demand. The DAX could move towards 20,150. Conversely, an upward correction could push the DAX below 20,000.

Expert opinions on the German private sector

Dr. Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank, commented on the preliminary private sector PMI data in Germany saying:

“These numbers are bad news. Until recently, the German economy was somewhat stabilized by the services sector, which offset the sharp decline in manufacturing. No longer. In November, service provider activity fell for the first time since February. Companies are also struggling with rising costs, particularly wages. (…) While some of these costs have been passed on to customers, it looks as if the industry is feeling the pinch.”

Job openings in the US are a signal of a robust US labor market

JOLTS job openings rose from 7.372 million in September to 7.744 million in October, indicating a robust U.S. economy. Termination rates also tended to increase, which is a sign of confidence in the labor market.

A tight labor market can support wage growth and boost consumer spending and demand-driven inflation. The Fed could lower market expectations for multiple rate cuts, potentially impacting riskier assets. However, a weaker EUR/USD could limit the impact of the Fed’s more restrictive interest rate policy on the DAX.

US market trends provide support

How might a resilient US economy impact global markets and short-term DAX trends?

On Tuesday, December 3, US stock markets reported mixed results. The Nasdaq Composite Index rose 0.40%, extending its winning streak to three sessions, while the S&P 500 gained 0.05%. However, the Dow fell 0.17%.

US jobs data influenced market sentiment while demand for technology stocks remained robust.

US economic calendar: labor market and services in focus

In the US session on Wednesday, ADP employment changes and ISM services PMIs could influence risk appetite.

Economists expect the ADP to report a 150,000 increase in employment in November, up from 233,000 in October. In addition, economists forecast that the ISM services purchasing managers’ index will fall slightly to 55.5 in November.

Better-than-expected data could point to a more hawkish interest rate stance from the Fed, potentially boosting US dollar demand. A weaker EUR/USD could counter sentiment towards fewer Fed rate cuts and increase buyer interest in DAX-listed stocks.