After the recent recovery of the Dax DE0008469008, the German leading index is heading for another record high in the new trading week.

The previous record of 24,639 points has held since the beginning of July and is within striking distance. While the summit between US President Donald Trump and Russian President Vladimir Putin on Friday (local time) on Ukraine did not produce any conclusive results, the fact that no further sanctions against Russia were announced may provide some relief.

"Even if we don't expect any decisive, reliable results, there should at least be insights into the direction of further talks. Depending on the outcome, we can initially expect reflexive movements on the stock market," Commerzbank analyst Martin Hartmann wrote before the summit. Sustained movements are only likely to become apparent once concrete agreements have been reached.

"The markets are likely heading into next week with mixed feelings anyway. Uncertainty remains regarding tariff policy," Hartmann added. Although US tariffs on Chinese goods have been suspended again for 90 days, the outcome of the negotiations remains highly uncertain. In addition, tariffs of 39 percent for Switzerland are on the table. Furthermore, it is still unclear what tariffs will be levied on pharmaceutical products.

Meanwhile, the tailwind from corporate quarterly figures is waning significantly in the new week. Experts at Landesbank Baden-Württemberg paint a mixed picture of the reporting season. While companies frequently managed to exceed analysts' average forecasts, a much more differentiated picture emerges when looking at the combination of revenues, gross profits, margins, and annual outlooks.

After all 40 DAX-listed companies have already reported on their business performance, only the results of a few second- and third-tier companies remain on the agenda for the new week. For example, the diagnostics company Stratec DE000STRA555 will report its figures on Tuesday. On Thursday, the ticket sales and concert promoter CTS Eventim DE0005470306 will provide an update on its performance in the first half of the year.

Investors' attention is likely to turn again to US monetary policy in the coming week. "The latest consumer price data reinforces expectations that the US Federal Reserve will cut its key interest rate at its next meeting, with even a large rate hike of half a percentage point considered possible," said Ulrich Kater, Chief Economist at Dekabank. However, the significantly stronger-than-expected increase in US producer prices has recently caused many investors to lose interest rate optimism.

Nevertheless, political influence on the Fed continues to grow. US Treasury Secretary Scott Bessent recently called for a rate cut of 0.5 percentage points in September and spoke of a rate-cutting cycle of at least 1.5 percentage points. Should US Federal Reserve Chairman Jerome Powell also embrace a looser monetary policy, this could become a key topic at the central bankers' meeting beginning next Friday in Jackson Hole, Wyoming.

The August purchasing managers' indices for Germany and the eurozone are due on Thursday. More detailed data on the development of German gross domestic product in the second quarter will follow on Friday./edh/la/jha/he

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