12.03.2019 – Daily report. The German DAX wants to rise – and on Tuesday the music for the financial market plays in foreign exchange trading. Specifically: the British pound as apparently a chaotic Brexit might be avoided. A further push factor for the shares in Frankfurt is a strong Wall Street: The markets across the Atlantic ocean reacted to unexpectedly positive retail data. Above all, technology stocks were demanded.
A slight plus for the DAX index
Up, up and away – but please with British understatement: The DAX took the 11,600 points in early trading. However, prices crumbled a little recently. After all, the 11,500 points acted as a support level. Among the German single stocks, brokers kept a close eye on the shares of VW, which had been hesitant recently.
Brexit vote in London
All eyes are now on London: This is where the Brexit vote takes place today. A waving through in the House of Commons is by no means certain, because both Brexiteers and the Bremain Group could refuse approval. But in the renegotiations between Britain and the EU on the Brexit agreement, Prime Minister Theresa May has gained ground. One of the results oft he latest meeting is an extension of the deadline for a border regulation in Ireland – the so-called backstop. It will be extended until the end of 2020. Britain’s exit from the EU is actually planned for 29 March. So traders and investors should keep an eye on the news ticker: Any critical or favourable comments on the river Thames could stir up the pound. Not to mention the result of the vote.
Tech rally in New York
New York equities had expanded their gains on Tuesday after a friendly start to trading. Above all, high-tech stocks such as Apple or Nvidia were in demand. The stock market close tot he Hudson river applauded the January figures for retail sales, which had been reported late due to the US shutdown: They rose by 0.2 percent, slightly better than the 0.1 percent forecast by analysts. More importantly, the buying mood is definitely returning, as can be seen from the downward revision of the December figure to minus 1.6 percent.
In a small rally, the Dow Jones finally closed 0.8 percent higher at 25,650 points – with Boeing’s sharp price losses slowing a stronger high. Nevertheless, the Dow ended a series of losses that lasted five days. The S&P 500 gained 1.5 percent to 2,783 points and the composite index of the technology exchange Nasdaq even rose by 2 percent to 7,558 points. By the way, a small gap between 7400 and 7,480 points seems to have formed here, which traders should keep an eye on as gaps tend to be closed.
The principle hope in China
Investors in Asia were also in a shopping mood: in Tokyo, the Nikkei index gained 1.8 percent to 21,503 points on Tuesday. The CSI 300 with the largest stocks in mainland China gained 0.7 percent to 3755.35 points. Investors are still waiting for a breakthrough in the trade dispute between the USA and China.
Investors either dazzled negative figures from the Chinese car market with their recent gains or took them as evidence that Beijing really needs a settlement in the customs dispute with the US. In February, Chinese car sales slipped almost 14 percent year-on-year. This was the eighth month in a row with a decline over the year. By the way, China is the largest automobile market in the world, and the industry is an important indicator for the entire economy. After all, the stock market is hoping for a buying boom in the future. Because in view of the not yet concrete stimuli of the Chinese leadership, many customers are currently holding back in order to take cash with them later when buying a car.
Frankfurt, London, New York, Shanghai – once again on Tuesday traders can see themselves confronted with a full range of interesting news on stocks, currencies and bonds.
The Bernstein Bank wishes you every success!
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