DAX Expected Slightly Higher
The German stock market should be stable on Thursday. Banks and brokers expect the German leading index DAX around two hours before the start of the stock market to be 0.2 percent higher to 12,350 points.
The DAX should start the new trading day on Thursday. On Tuesday, despite the unclear outcome of the US presidential election, the stock market barometer was two percent stronger at 12.12,324.22 points. The German leading index had thus made up for a large part of the slump of the previous week.
The US election is likely to remain the number one topic on Thursday. With the important victories proclaimed by US broadcasters in Michigan and Wisconsin, Democrat Joe Biden is close to his goal: All he needs is one state to win the election. The state of Nevada, which could decide the presidential election, does not want to publish information on the status of the count until the evening.
But stock marketers will probably still be busy reading this election for a while. Because the incumbent US President Donald Trump is trying in several states to have courts intervene in the counting of votes in the presidential election. Among other things, he and the Republicans have called for Pennsylvania and Michigan to suspend further vote counting until their election observers have better access to the process. In Wisconsin they want a recount.
In addition, the US Federal Reserve meeting and advice to the Bank of England (BoE) are on the agenda on Thursday. Since the expected clear election victory of Trump’s challenger Joe Biden and his Democrats failed to materialize, the chance of a large tax-financed US stimulus package is dwindling, said Jim Leaviss, chief bond investor at asset manager M&G.
DAX Expected Slightly Higher - /10