DAX 30 Fundamental Analysis – week of September 5, 2016

The DAX 30 soared at the end of the week to trade at 10683 with a gain of almost 1% as the euro eased and traders prepared for the ECB meeting this week. Better than expected PMI data out of Germany helped the index gain. The DAX is up 4.46% for the month but remains a bit low on a ytd basis.

European share markets cheered the jobs figures’ implication that the Fed may wait until December to act. “People are taking a little bit of a relief that it wasn’t a 200,000 plus print, certainly in the equity market,” said Sean Lynch, co-head of global equity strategy at Wells Fargo Investment Institute in Omaha, Nebraska. MSCI’s all-country world equity index was last up 2.94 points, or 0.7 percent, at 420.29.

European stock markets surged yesterday as investors bet that weaker than anticipated US jobs data released yesterday will delay any interest rate by the US Federal Reserve. It had been expected that the Fed could hike the rate when it meets later this month.

Non-farm payrolls rose by 151,000 jobs last month, below consensus expectations of 180,000. The unemployment rate did not fall, contrary to expectations, and was unchanged at 4.9pc.

Analysts said that the jobs report made a rate increase in September much less likely, despite more hawkish noises from Fed officials in the last week.

US short-term interest rate futures rose, indicating trader expectations that the Federal Reserve could soon lift interest rates had been reduced.

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This Week’s Economic Events That You Should Be Monitoring:

 Government Bond Auctions

Date Time       Country           Auction

Sep 06 11:00 Austria Holds bond auction

Sep 06 11:30 UK 1.5% 2026 Gilt

Sep 06 11:30 Germany Holds I/L bond auction

Sep 07 10:30 Denmark Holds bond auction

Sep 07 11:03 Sweden Holds bond auction

Sep 07 11:30 Germany Eur 5bn 0% Aug 2026 Bund

Sep 08 11:00 Ireland Holds bond auction

Sep 08 17:20 Italy Announces details of bond auction