DAX-FLASH: Just in the black – weekly profit is emerging

FRANKFURT (dpa-AFX) – The Dax could make another weekly profit on Friday after its loss-making previous week. Evidence points to a slightly positive start, with the weekly profit expected to grow to just under 0.6 percent. The broker IG valued the German leading index 0.1 percent higher at 19,228 points two hours before the Xetra launch.

The day before, the US inflation figures did not provide the big impetus that could push the German benchmark index out of its neutral area between the record high from September and the psychologically important support at 19,000 points. The reporting season will begin in the USA on Friday, which should show what the international economy is doing in the next few weeks. JPMorgan and Wells Fargo are the first US banks to have their books examined.

“Now the companies have to show that the new all-time high of the S&P 500 is also supported by rising profits,” wrote market observer Thomas Altmann from QC Partners this morning, referring to the latest record of the market-wide US index. The hope for impulses from China was also a key factor in the recent gains, where further details on the planned economic stimulus program were awaited on Saturday./tih/zb