Uncertainty among investors: Dax is waiting paralyzed for November 3rd

There are only a few weeks left to the US presidential election. As long as it has not been decided who will move into the White House, investors on the Frankfurt Stock Exchange are likely to keep a low profile. And another, recurring topic is keeping the Dax in suspense: Brexit.

The moderate ups and downs on the German stock market should continue into the new week with the start of the reporting season in the USA. At least this applies if there is no extraordinary positive or negative news, for example from politics or the coronavirus. The remains Dax from a chart point of view supported in the area around 12,800 points, while the next hurdle is waiting at around 13,300 points. On Friday, the Dax had remained stable at the end of an overall strong week on the stock market.

After the German benchmark index initially benefited moderately from economic hopes, it has now also slipped into the red. Ultimately, there was a minimal increase of 0.07 percent to 13,051.23 points. On a weekly basis, this meant a profit of almost three percent.

As long as in the US the Presidential election standing at the door, uncertainty remains high and investors are unlikely to venture too much out of cover. There is also a rather low buying mood in view of those going into the final round Brexit negotiations expected. British Prime Minister Boris Johnson had set a deadline of Thursday, October 15, for an agreement. On this day the EU summit begins, which deals with the future relationship with Great Britain.

"In order to avoid a hard Brexit and to give the parliaments the necessary time for ratification, the EU and the United Kingdom would have to basically agree on a common line by then", states the Landesbank Baden-Württemberg ( LBBW).

"Don't paralyze the economy a second time across the board"

The remains unchanged Corona pandemic, and not just after US President Donald Trump has apparently largely recovered from his Covid-19 disease. The virus is currently spreading rapidly in large parts of Europe and worldwide. Analyst Christian Apelt from the Hessische Landesbank (Helaba) expects the new restrictions in Europe due to the virus situation to again impair economic growth. "The upcoming economic data should only partly reflect that." However, new, broad-based lockdowns by politics are no longer expected. According to LBBW, "everything is being done not to paralyze the economy a second time across the board".

On the economic side, the focus in this country is on ZEW economic expectationswhich will be announced on Tuesday. The financial market participants surveyed by the Center for European Economic Research (ZEW) have already anticipated a strong upswing in Germany in view of the previous survey. For October, "a little more realism should return," said Helaba analyst Stefan Mütze.

In addition, there are some US data on the agenda. According to the Helaba expert Apelt, the retail sales and data on industrial production due on Friday should have continued their catch-up process in September. Regional sentiment indicators, expected on Thursday and Friday, on the other hand, may have deteriorated somewhat.

On the corporate side, the US banks, with their figures for the third quarter, will come into focus in the new week. Start on Tuesday Citigroup and JPMorgan. Will be on Wednesday Bank of America, Goldman Sachs as Wells Fargo report and on Thursday Morgan Stanley.

Metro takes a stand on the takeover offer

In Germany, the packaging specialist will be on Tuesday Gerresheimer as well as on Thursday High Low submit their quarterly reports. On Wednesday the retail group will metro in an interim report on its 2019/20 financial year sales. In addition, the board wants to submit a reasoned opinion on the takeover offer from EP Global Commerce on Thursday.

The holding company controlled by billionaire Daniel Kretinsky announced in mid-September that it wanted to increase its stake in Metro to more than 30 percent with the help of a voluntary offer and without a minimum acceptance threshold. The Metro board had immediately rejected this and announced a comment.