December 6, 2023 – Sensation at the German stock exchange: The DAX reached an all-time high yesterday! In November, it gained almost 10% – a real boom! And the US job market is slightly relaxing: Good news for the markets.
- German Stock Index DAX on Record Hunt: All-Time High Reached!
- US Job Market Relaxes: Good News for the Markets
German Stock Index DAX on Record Hunt: All-Time High Reached!
Stock Exchange Hit: DAX Climbs to the Top!
Sensation at the stock exchange: The DAX reached an all-time high yesterday with 16,533 points! In November, it posted a solid 9.5 percent gain – a real boom!
Reason for the Rally: Interest Rates Remain Stable
The stock market world is on the upswing, driven by the hope that interest rates will not rise further but could even fall next year. The inflation rate in the Eurozone has settled at 2.4 percent, close to the European Central Bank‘s target of two percent.
Lower Interest Rates, Higher Return Opportunities
Falling interest rates mean lower financing costs for companies. For investors, this means: Stocks come into focus as they promise higher returns.
But Caution: Core Inflation Remains a Risk
Despite the good news, investors should remain cautious. The core inflation rate, excluding volatile food and energy prices, is still at 3.6 percent. Inflation could prove to be more stubborn than the market expects.
What Happens Next?
Experts anticipate that the ECB could lower interest rates by 0.25 percentage points as early as March. However, if the ECB takes more time, some corrections in the stock market could occur. One thing is certain: The market remains exciting!
US Job Market Relaxes: Good News for the Markets
Job Market Surprise in the USA
Big impact on the US job market: The number of open positions unexpectedly fell by 0.6 million to 8.7 million in October – the lowest level since March 2021. Nevertheless, there are still theoretically 2.2 million more open jobs than unemployed people.
Closing Gap in the Job Market
The gap between open positions and job seekers is getting smaller. While the ratio was more than 2.0 open positions per job seeker in the spring, it has now dropped to 1.3. Also, the number of employees voluntarily leaving their jobs is as low as it hasn’t been in three years.
Stock Market Up, Interest Rates Down
The market’s reaction was swift: Yields on ten-year US Treasury bonds fell to a three-month low of 4.16 percent. For the stock markets, this means a tailwind! If Friday’s jobs report shows similar trends, these developments could continue.
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Disclaimer: Many things here represent our opinion. Others are information from the Internet. We can therefore never claim to be correct or complete. And never base a business decision solely on the news you receive from us.