FRANKFURT (dpa-AFX) - Opinions differ on the further development of the DAX following the recent stabilization. According to the experts at Landesbank Helaba, the positive trend on the markets should continue for the time being. In contrast, the weekly commentary of Landesbank Baden-Württemberg (LBBW) states that it will be more difficult for European equities despite favorable valuations.

Helaba equity strategist Markus Reinwand sees upside potential for the leading German index: "A further fall in key interest rates would open up additional scope for valuation." In addition, the improving global growth and earnings prospects argue for a further rise. However, as soon as the new US president "really gets going, the calm could soon be over", the report continues.

Moreover, even without Trump, Europe "has enough problems of its own to contend with", adds LBBW strategist Frank Klumpp with a view to the weak economy and the budget dispute in France. With regard to the DAX, he is concerned that earnings estimates have fallen over the course of the year despite the moderately positive third quarter overall - particularly in the automotive sector.

Donald Trump's second term of office begins on January 20. However, he has already caused a stir on the stock markets since his election at the beginning of November - particularly with the announced tariffs on imports from several countries and controversial personnel decisions for his future administration. There are doubts as to whether Trump will actually introduce the tariffs. Expert Christopher Wood from the US bank Jefferies sees this primarily as a negotiating tactic and cites statements by the future Treasury Secretary Scott Bessent, who is considered a moderate, as evidence.

In recent weeks, the most important US share indices in particular have benefited from the so-called "Trump trade" with new price records. The DAX is also trading higher than before Trump's election success. As a result, there is apparently also a hint of a "year-end rally" for the leading German index, the possibility of which market observers have repeatedly pointed out in recent weeks.

Since the beginning of the year, the Dax has risen by more than 16% - three times as much as its eurozone counterpart, the EuroStoxx 50. This means that it is lagging slightly behind New York's leading index, the Dow Jones Industrial, and significantly behind the broad market S&P 500 and the US tech barometer, the Nasdaq 100. However, it is less than one percent short of its own record of 19,674 points set in October.

Some economic data could have an impact on the markets in the new week. On Monday and Wednesday, the business magazine "Caixin" will publish the sentiment barometers for the Chinese industrial and service sectors. The corresponding data from the Beijing statistics office will already be known by then. The publication of purchasing managers' indices from the USA has also been announced for Monday and Wednesday.

In the eurozone, producer prices will be announced in the middle of the week. The inflation data is important with regard to the monetary policy of the European Central Bank (ECB). It is generally expected to cut the key interest rate further at its next meeting on December 12 in the fight against economic weakness.

Retail trade data from the currency area and order and production data from German industry have been announced for Thursday and Friday. However, the last trading day of the week is likely to be dominated by the US labor market report. This is because the domestic employment trend is of central importance for US monetary policy. Unlike the ECB, a further interest rate cut by the Fed less than a week later is not a foregone conclusion, as the US economy is doing much better than in Germany.

Corporate news is likely to be scarce in the new week. The quarterly figures from US software manufacturer Salesforce, which are expected on Tuesday evening, could also give German industry colleague SAP a boost. On Wednesday evening, Deutsche Borse will provide information on the future composition of the Dax index family. The following day, Adidas and Puma industry colleague Foot Locker will report on its business performance. On Thursday, the copper group Aurubis will present its final figures for the past financial year and the lubricant manufacturer Fuchs will hold a capital market day./gl/tih/he

-- By Gerold Lohle, dpa-AFX