On the US stock exchanges, speculation about the further course of the Fed is still the topic. Even the upcoming elections are taking a back seat. However, new indications as to where the key interest rate could go will only come in the second half of the week.
Wall Street started the new trading week with premiums. This continued the positive trend on the trading floor. At the end of the week, mixed US jobs data for October had raised hopes that the US Federal Reserve might slow the pace of its rate hikes, despite the Fed's hawkish statements after last Wednesday's interest rate decision. These hopes were also valid at the beginning of the new week. The Dow Jones index increased by 1.3 percent to 32,827 points. The broader S
Important economic data were not on the agenda. October CPI data will be released on Thursday and will provide an indication of whether inflation is beginning to ease and allow the Fed to adopt a less rigorous stance. Here, the annual rate is expected to fall to 7.9 percent, after 8.2 percent in the previous month.
Interest was also focused on the midterm elections in the USA. This year, however, according to strategists, impulses from the elections are likely to be overshadowed by interest rate expectations, corporate results and economic data. A possible expansion of the Democratic majority would "increase the likelihood of fiscal stimulus" in the event of a recession next year, Wells Fargo said. "If Republicans retake one or both houses of Congress, sweeping fiscal changes look unlikely over the next two years unless a crisis like the one in 2020 occurs," said analysts Michael Pugliese and Karl Vesely.
Among the individual values, Apple rose by 0.4 percent after initial sales. The company has announced that the delivery of the high-priced iPhone models will be delayed due to the corona restrictions in a factory in Zhengzhou, China - shortly before the start of the Christmas business, which is so important for Apple.
Meta rose 6.5 percent after insiders reported the Facebook parent was planning major job cuts. More details could be announced as early as Wednesday. As of the end of September, Meta employs over 87,000 people.
Biontech turned over less in the summer and also earned less than in the previous year. Nevertheless, market expectations were exceeded. The company also raised the lower end of the forecast corridor for its Covid products. The stock advanced 4.2 percent.
With the increased willingness of investors to take risks, safe haven currencies such as the dollar were not in demand. The dollar index fell another 0.7 percent. In return, the euro climbed above the dollar parity. MUFG's FX experts nonetheless believe it is "too early for a more sustained weakening of the US dollar". The data showed that the US unemployment rate had risen, but the number of people employed had also risen more than expected. Overall, this will keep the pressure for further rate hikes up while China continues its stringent Covid-19 measures, currency analyst Lee Hardman said.
Oil prices went down after a volatile course. Brent and WTI prices fell slightly. The focus was on a possible end to the Covid restrictions in China. Oil prices are likely to rise sharply if restrictions are officially lifted, Mizuho's Robert Yawger said.
