The RoboMarkets Weekly Review and Outlook

The DAX came perilously close to hitting its annual low this trading week, but it was able to stop and stabilize near the 12,600 level, which is the good news. The index may potentially re-target the psychological threshold of 13,000 points with the faintest hint of a slowdown in the booming US labor market.

A persistent recovery, however, appears improbable. This is due to the fact that the market has begun the statistically weakest stock market period of the year under the most unfavorable technical and fundamental circumstances possible.

Even if the 315,000 new non-farm payrolls in the US in August were a little more than anticipated, the wage development data at least raises the possibility that the labor market condition in the country would improve in the coming months. The 5.2% increase in wages was a little less than anticipated.

The chances of recession in China and Europe are growing, despite the fact that the most recent economic figures from the USA overall show that the economy is still strong. Beijing's administration maintains rigidly to its zero-covid policy, and this week it put Chengdu's 21 million residents under lockdown once again.

Energy Market Bottlenecks

A difficult winter in Europe may be in store due to the present instability on the energy market. The supply side is now dropping further, after the price of power has previously only gone in one direction in response to increasing oil and gas costs. Germany's coal-fired power plants are already being compelled to provide less energy due to the low water levels.

Only one out of two of France's nuclear power facilities are still connected to the grid. The nation no longer supplies its neighbors with power as it once did; instead, it must import it.

Remaining in Focus: Inflation

Above all, growing energy costs are what is keeping inflation going. The ECB meeting scheduled for next Thursday is likely the most significant event of the week. The central bank must act quickly in light of the most recent rise in consumer prices in the Eurozone, which increased by 9.1 percent in August. With the 9-euro ticket and the gasoline rebate, prices even in Germany increased last month more than was anticipated.

This is increasing concerns about double-digit inflation in the near future and increasing pressure on the ECB. There would consequently be no longer be any genuine surprise if there was a record hike of 75 basis points on Thursday. Bonds would therefore become even more appealing compared to the high-risk stocks that are already available, and the stock markets would lose more prospective investors as a result.

In the next week, the DAX is probably not going to appear nearly as golden. Till the barrier at 13,150 points is broken, there can be no notion of a sustained upward trend reversal. If Russia permits gas to flow through Nord Stream 1 again on Saturday, when the ostensibly so-called repair work is due to be concluded, it may also have an i

The DAX came perilously close to hitting its annual low this trading week, but it was able to stop and stabilize near the 12,600 level, which is the good news. The index may potentially re-target the psychological threshold of 13,000 points with the faintest hint of a slowdown in the booming US labor market.

A persistent recovery, however, appears improbable. This is due to the fact that the market has begun the statistically weakest stock market period of the year under the most unfavorable technical and fundamental circumstances possible.

Even if the 315,000 new non-farm payrolls in the US in August were a little more than anticipated, the wage development data at least raises the possibility that the labor market condition in the country would improve in the coming months. The 5.2% increase in wages was a little less than anticipated.

The chances of recession in China and Europe are growing, despite the fact that the most recent economic figures from the USA overall show that the economy is still strong. Beijing's administration maintains rigidly to its zero-covid policy, and this week it put Chengdu's 21 million residents under lockdown once again.

Energy Market Bottlenecks

A difficult winter in Europe may be in store due to the present instability on the energy market. The supply side is now dropping further, after the price of power has previously only gone in one direction in response to increasing oil and gas costs. Germany's coal-fired power plants are already being compelled to provide less energy due to the low water levels.

Only one out of two of France's nuclear power facilities are still connected to the grid. The nation no longer supplies its neighbors with power as it once did; instead, it must import it.

Remaining in Focus: Inflation

Above all, growing energy costs are what is keeping inflation going. The ECB meeting scheduled for next Thursday is likely the most significant event of the week. The central bank must act quickly in light of the most recent rise in consumer prices in the Eurozone, which increased by 9.1 percent in August. With the 9-euro ticket and the gasoline rebate, prices even in Germany increased last month more than was anticipated.

This is increasing concerns about double-digit inflation in the near future and increasing pressure on the ECB. There would consequently be no longer be any genuine surprise if there was a record hike of 75 basis points on Thursday. Bonds would therefore become even more appealing compared to the high-risk stocks that are already available, and the stock markets would lose more prospective investors as a result.

In the next week, the DAX is probably not going to appear nearly as golden. Till the barrier at 13,150 points is broken, there can be no notion of a sustained upward trend reversal. If Russia permits gas to flow through Nord Stream 1 again on Saturday, when the ostensibly so-called repair work is due to be concluded, it may also have an impact on the market's ability to do so in the next week.

mpact on the market's ability to do so in the next week.