The DAX has posted gains in the Friday session. Currently, the DAX is at 13,481.00, up 0.30% since the close on Thursday. There are no eurozone indicators on Friday. The US releases key employment numbers, led by nonfarm payrolls. The indicator is expected to soar to 311 thousand in October, after a decline a month earlier. However, wage growth could be in trouble, as Average Hourly Earnings is forecast to slow to 0.2 percent. No change is expected in the unemployment rate, with an estimate of a sizzling 4.2 percent. As well, the US releases ISM Non-Manufacturing PMI, which is expected to drop to 58.5 points.
The DAX posted strong gains this week, in response to the release of positive corporate earnings. Automobile sector posted strong gains, led by BMW, Daimler and Volkswagen. The DAX has set another record high on Friday, and the index has jumped 9.6 percent since early September. The robust German economy has helped boost German stock markets, and with the economy expected to record a strong fourth quarter, the DAX rally could continue.
German numbers looked sharp this week, as the largest economy in the eurozone continues to perform well in 2017. Manufacturing PMI remained steady at 60.6, its highest level since April 2011. The German labor market continues to impress, as unemployment rolls declined for a third straight month in October. Unemployment has now dropped in all but two readings since June 2015.
After an excellent GDP report last week, the US economy faces another report card on Friday. The US releases nonfarm payrolls and wage growth, and the readings could affect global stock markets. Nonfarm Payrolls posted a rare decline in September, a result of the hurricanes which battered the US. The markets are expecting job growth to surge in October, with an estimate of 311 thousand. However, wage growth could weigh on the markets, as Average Hourly Earnings is forecast to slow to 0.2 percent.
