FRANKFURT (dpa-AFX) - After eventful days, the DAX will probably be denied a breather in the new week. The uncertainty surrounding the outcome of the US presidential election and the end of the traffic light coalition in Germany is likely to persist, as many questions about the future economic policy of the United States and political developments in this country remain unanswered.

After Donald Trump won the US election by an unexpectedly large margin, the so-called "Trump trades" on the financial markets gathered pace. As a result, US equities, bond yields, cryptocurrencies and the US dollar rose significantly. In contrast, the German stock market moved sideways with greater fluctuations. This is because the higher US import tariffs threatened by Trump are likely to dampen the earnings prospects of export-oriented sectors.

In contrast, the end of the traffic light government in Berlin was received positively in Germany. Behind this "was the hope that a new government would finally resolve the German economic malaise", noted Dekabank chief economist Ulrich Kater. However, from today's perspective, it will probably be months before a new, effective government is formed. "Until then, the country will remain politically paralyzed in a difficult environment, also in view of the burdens that could come from the USA," said Helaba foreign exchange strategist Christian Apelt.

In view of the political events, the latest round of central bank decisions went somewhat under the radar. As expected, the US Federal Reserve lowered its key interest rate by 0.25 percentage points and is likely to maintain its easing course for the time being. The Bank of England also cut interest rates by the same amount. The central bank in Sweden even lowered its key interest rate by 0.50 percentage points.

It will be interesting to see whether the US equity rally continues in the new week. "As the Republicans are likely to have a majority in both the US Senate and the US House of Representatives, Donald Trump should have a good chance of implementing his plans to cut US corporate taxes from 21% to 15%," believes Commerzbank financial analyst Andre Sadowsky. This would be a further tailwind for the earnings trend of US companies.

From an economic perspective, the new week will be somewhat calmer. Among other things, the focus is likely to be on the German ZEW index on Tuesday. In the USA, the main items on the agenda are the inflation figures on Wednesday and Thursday and retail sales and industrial production on Friday.

Also on Friday, China will release industrial production and retail sales data, which will take center stage. "China has one of the lowest consumption rates in the world and is therefore heavily dependent on foreign demand," emphasized Edgar Walk, Chief Economist at Metzler Asset Management. He assumes that the Chinese government's stimulus measures have not yet been sufficient to significantly revive consumption.

"Against this backdrop, there are high expectations that the Chinese government will step up its efforts significantly. Especially as the trade war between the US and China threatens to escalate after the election result in the US, which could hit the Chinese economy hard. This speaks more in favor of a major stimulus," expects Walk.

In addition to politics, monetary policy and the economy, corporate figures are also likely to influence market activity in the new week. Among others, the quarterly reports of Dax and MDax stocks Continental, Hannover Re, Stabilus and Hypoport are on the agenda on Monday. Bayer, Brenntag, Infineon, Jenoptik, United Internet and Jungheinrich will follow on Tuesday.

Scheduled for Wednesday are: TAG Immobilien, Allianz, RWE, Siemens Energy, Stroer, RTL and Porsche SE. And on Thursday Aroundtown, Bilfinger, Deutsche Telekom, Eon, Merck KGaA, K+S, Siemens and Talanx, among others, will report on their business development./edh/jsl/he

--- By Eduard Holetic, dpa-AFX ---