20.12.2019 – Daily Report. Records, records, records – Wall Street is preparing the bulls a nice gift just before Christmas. The DAX also rises on Friday afternoon. Shortly before the festival, the range of topics for traders was once again pleasingly diverse.
Slight plus in Frankfurt
By midday on Friday, the DAX was up 0.7 percent at 13,300. Most recently, the German leading index had again moved closer to the 50-day line, which runs at 13,056 points. Apparently, large addresses had recently sold German equities to invest money in the US – the US stock market is hardly to be held back. But who knows, maybe the trade in Frankfurt will start another year-end rally. Otherwise, the GfK consumer climate slipped slightly by 0.1 points to 9.6 points but remained at a high level.
Asia withoWitches’ Sabbath on the stock exchange
The day should remain quite dynamic, because it runs the triple witch’s sabbath. On the futures exchanges, all four types of derivatives, i.e. options and futures, expire on indices and individual shares. Large investors often try to push the underlyings on which they hold derivatives in the right direction.
Small minus in Asia
Investors in Tokyo mostly pressed the sell button. The Nikkei lost 0.2 percent to 23,817 points. This means that the index has recorded an increase of almost one-fifth on a year-on-year basis. Just a few days ago, it had reached its highest level in 14 months. In China, the CSI-300 lost 0.3 percent to 4,017.
Record-breaking chase in New York
Investors on Wall Street lit up a price firework. Both the Dow Jones, the S&P 500 and The Nasdaq 100 are climbing to new all-time highs. Even unconvincing economic data did not stop investors from making further investments. The Dow Jones Industrial rose 0.5 percent to 28,376. The broad-based S&P 500 rose 0.5 percent to 3,205 points. And the Nasdaq 100 gained 0.7 percent to 8,641. So far, the Dow Jones has gained nearly 22 percent, while the S&P 500 has gained about 28 percent.
USMCA – Impeachment Delay
Three factors created a buying mood. On the one hand, the House of Representatives passed the USMCA trade deal, which replaces NAFTA. Furthermore, the Democrats in the USA further devalued the party’s impeachment by House Speaker Nancy Pelosy now surprisingly blocking the forwarding of the two passed articles to the Senate. Allegedly to ensure fairness – de facto, to force the Senate to a secret ballot (which Pelosy did not grant to the House). This in the hope that the Republicans will switch sides. In the weeks before, however, she had kept pace. Why push an impeachment in the first place so as not to finish it quickly?! As it stands, Pelosy wants to prevent a cleansing by the Senate. Which should not succeed. Wall Street continues to expect a pro-business President Trump. Especially since the Dems addressed the issue of ecology with affection in their sixth candidate debate.
Anticipation for Phase 1
And above all, the customs deal came back into focus. U.S. Treasury Secretary Steven Mnuchin told U.S. television station CNBC that Phase 1 with China was fixed in writing , and he expressed confidence that the deal would be signed in early January. Gao Feng, spokesman for the Chinese Ministry of Commerce, assisted him. He told reporters that both sides were now talking about the official signing of the abbot- after which the text would be published. Wall Street is waiting to clarify whether and how strongly the Chinese can be tiedup; and whether they will really buy agro-products on a large scale in the USA. Disappointment potential not excluded – if you trade CFD, you should keep an eye on pork, soy, wheat and rice.
Voltage at Cable
GBPEUR last held slightly up at 1.1732. The Bank of England yesterday left the key interest rate unchanged at 0.75 per cent. The central bank lowered its fourth-quarter growth outlook from 0.2 percent to 0.1 percent. Inflation expectations for the spring are 1.25 percent, well below the 2 percent target. However, the central bank nevertheless hinted at a moderate rate hike: “Some modest tightening of policy, at a gradual pace and to a limited extent, may be needed to maintain sustainably inflation y at the target. “
This Friday afternoon, Prime Minister Boris Johnson wants Parliament to vote on his Brexit deal. At the same time, an extension of the transitional period planned for the end of 2020 is to be ruled out. In the foreign exchange market, this could again create a bare nerve, as many fear a chaotic Brexit again.
What the day brings
Otherwise, there is a bouquet of important data.
For example, US GDP is reported at 2:30 p.m. in the third quarter. In addition, data on private consumption.
At 4 p.m., consumer confidence followed in December, private income and spending in November.
At the same time, the University of Michigan is also in the process of boosting consumer confidence for December.
As always, you will find an overview here: Market Mover
The Bernstein Bank wishes successful trades and already Merry Christmas!
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