Market report: DAX is likely to start November with gains

Market report before US midterm elections DAX gains - investors remain cautious As of: November 2nd, 2026 • 6:32 p.m

Investors on the German stock market were cautious at the start of the week. Although the DAX was able to maintain its gains during trading, there was no momentum for a major price jump.

There was too much caution about the upcoming political and economic events in the USA. In particular, the midterm elections and other quarterly figures from large US corporations are likely to cause movement on the stock markets in the coming days. The leading German index closed at 25,981.09 points, up 0.6 percent.

The significantly lower oil prices provided a tailwind. Both the North Sea variety Brent and the US variety WTI fell by more than four percent over the course of the day. This meant that the energy market gave up some of the strong price increases of the past few weeks.

Previously, concerns about a further escalation of the conflict between the USA and Iran had driven prices to their highest level in around six months.

The price decline was primarily triggered by hopes of a diplomatic rapprochement between Washington and Tehran. A media report about US President Donald Trump's efforts to ease tensions in the conflict with Iran eased concerns that American attacks would soon resume.

This meant that part of the geopolitical risk premium that had recently been reflected in oil prices disappeared, at least temporarily.

The fall in oil prices is initially good news for the stock markets. Cheaper energy can relieve the burden on companies and consumers. This potentially reduces production and transport costs for industry, while at the same time mobility and heating become less expensive for private households.

This could also reduce inflationary pressure and give central banks some leeway. However, it is still unclear whether the relaxation on the oil markets will last.

After a strong first half of the year, the recovery of the German economy stalled in the summer

The latest economic signals from Germany are less encouraging. The retail sector suffered a decline in sales in September. Although consumer sentiment brightened somewhat in November, there is still no sign of a sustained recovery in purchasing sentiment.

Many consumers remain cautious amid economic uncertainty, high costs of living and concerns about their own financial situation.

The trade association therefore initially sees little impetus from private consumption for economic growth. Consumption in particular is considered an important pillar of the German economy. If consumers hold their money together, many retail companies will miss out on a significant portion of their demand. This makes it difficult for the industry to emerge from the ongoing weak phase.

A glimmer of hope is the upcoming Christmas business. It is traditionally one of the most important sales periods of the year for retailers. Companies are betting that spending on gifts, food and other purchases will increase again at the end of the year.

However, business is likely to be under special circumstances this year. Many consumers want to pay more attention to their spending and save money in the coming weeks. The hoped-for recovery could therefore be weaker than hoped.

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At the start of the week, the stock market's focus was already on the next important dates in the USA. The midterm elections will be the focus there on Tuesday. They could provide information about which economic policy projects the government can still implement in the future.

What is interesting for the financial markets is what consequences this could have for tax, trade and economic policy in general.

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Even before the election results, there is another important date on the evening after the US stock market closes: Apple will present its quarterly figures. The technology group is one of the heavyweights on the international stock markets.

Its business figures and, above all, the outlook for the coming months are therefore likely to be important not only for the share itself, but also for the mood in the technology sector.

“Apple has to fix it,” commented market analyst Andreas Lipkow from CMC Markets with a view to investor expectations. Hopes for positive signals are high. Recently, concerns about the prospects of artificial intelligence and the high investments by technology companies had become stronger again.

Business figures and outlooks from Alphabet, Intel and Amazon had reignited the discussion about whether the enormous spending on AI infrastructure and new applications was actually reflected in increasing sales and profits quickly enough.

Apple could now provide at least some peace of mind. It's not just about the current sales figures of iPhones and other devices. Investors will pay particular attention to what role AI will play in the group's business model in the future and whether this will result in new growth opportunities.

This topic in the program: tagesschau.de | Daily conclusion with final Dax | 11/2/26 | 5:51 p.m