The German index is up near 2% after the jobs report in the United States suggested that the Fed could be a bit more supportive than thought.
DAX
The German index is up about 2% for the session on Thursday as the reaction to the jobs numbers in the United States was obviously very bullish. The idea of course being that the Federal Reserve, with less employment added last month than anticipated, will keep interest rates a little bit lower than the market may have been pricing in as at one point they were talking about 2 25 basis points added.
Top Regulated Brokers
That being said, the market is likely to continue to look at the risk appetite situation through not only the prism of the interest rate markets but also the situation in the Middle East, as peace seems to be the main theme, but we still could get the occasional hiccup. After all, the market is likely to continue to see concerns about energy for the German industrial sector.
Technical Breakout and Shifting Risk Appetite
All things being equal, it is worrying that we got this high this quickly, but it also looks like we are breaking out to the upside. Short-term pullbacks, I think, continue to find plenty of buyers near the 25,000 Euro area.
The Eurozone inflation undershooting expectations, 2.8% versus the 3.0% consensus, eases the idea of ECB tightening as well. Optimism from the Doha peace talks after Iran signaled it would send a delegation has also added a little bit of a boost as well.
Defense names and Siemens Energy have been the standout sector leaders through the week, but really, at this point, I think you're starting to see plenty of risk appetite expansion, and that means other companies such as Rheinmetall and SAP can get a little bit of a boost as well. Look for value. I think short-term pullbacks should continue to attract plenty of buyers at this point.
Ready to trade our stock market analysis? Here’s a list of some of the best CFD trading brokers to check out.