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Lethargically to the annual high

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21/02/2019 – 12:00: On Friday morning, the DAX oscillated slightly above the 11,400 mark, reaching a new high for the year after all. However, activity was largely frowned upon recently. Domestic impulses and news from overseas were rather scarce. These were joined by setbacks on Wall Street and radio silence in the Trade War between China and the USA.

Focus on Ifo and Wirecard
Hardly any movement in Frankfurt: On Friday morning, the DAX listlessly dragged itself around 11,400 points, a sustained breakout above this level would signal the end of the latest sideways range. Already on Thursday the trading volume had been rather low. At its peak, the German benchmark index climbed by up to 0.4 percent to 11,467 points – after all, this is the highest level of the still young stock market year.
The Ifo Business Climate Index disappointed. Brexit worries and the fear of penalties for German cars in the USA are causing pessimism. The index fell to 98.5 points in February, its lowest level since December 2014. German managers also expect little for the coming six months: The subindex of business expectations slipped to 93.8 points.
Wirecard put itself into the spotlight once again with this interview: After the latest price fluctuations, Group CEO Markus Braun said in a conversation with the “Frankfurter Allgemeine” that he expects the share price to recover as soon as the allegations of allegedly incorrect booking of sales have been finally cleared up.

Hardly any impulses from overseas
The Nikkei index fell by 0.2 percent to 21,425 points. And Wall Street had also provided few arguments for buying on Thursday: At the closing bell, the Dow Jones Index recorded a minus of 0.4 percent at around 25,851 points. The S&P 500 also fell by around 0.4 percent to almost 2,775 points. The composite index of the Nasdaq technology exchange also lost 0.4 percent to just under 7,460 points.
The economic data collected seemed to be rather food for the bears. Although the US labor market continues to show unbroken strength, the economic situation is still very positive. However, the business climate in the Philadelphia region deteriorated considerably more in February than analysts had forecast. Orders for durable goods also disappointed in December. And finally, industrial buyers in February were also more cautious than forecasted.
By the way, in New York, the Nasdaq Composite is currently very interesting: while the Dow and S&P 500 are already trading a bit above the 200-day line, the high-tech indicator is just holding onto it. So, the companies from Silicon Valley & Co. look like an anchor that slows down the market as a whole – no wonder, because growing companies are particularly dependent on low interest rates and the cheap production of components, which brings us back to the subject of China.

Shadow boxing in the Trade War
In the trade negotiations, experts are rubbing their eyes in amazement: according to reports from the US television channel CNBC, Washington is demanding what Beijing supposedly wants anyway – a fixed yuan. There is a theoretical possibility that Beijing will devalue the renminbi at some point in order to boost exports. In fact, US President Donald Trump complained last July that the yuan was falling like a stone. And yes, 2018 was a difficult year for the Chinese economy, so there was a great temptation to devalue it.
But analysts told CNBC that the Middle Kingdom wants a strong currency in the future. No wonder, because the “chuppys” – Chinese urban professionals – would not forgive the communist cadres for a sustained slump in purchasing power. The Chinese middle class is enjoying the seemingly endless economic upswing once initiated by Deng Xiao Ping, as you can easily see from the imports of Swiss luxury watches, Scottish whisky and Bordeaux, which have been booming for some time now, albeit with small dents.
Let’s wait and see whether news will stir up the market here, which can happen very quickly. Meanwhile, talks between the US and China have continued at a high level in Washington. Otherwise, ECB President Mario Draghi will be appearing in public. The ECB’s chief monetary officer is unlikely to make any official statements on behalf of the ECB during his speech at the University of Bologna, where he will be awarded an honorary doctorate. But who knows, a small hint on the future of European monetary policy could slip between the lines.

Important Notes on This Publication

The content of this publication is for general information purposes only. In this context, it is neither an individual investment recommendation or advice nor an offer to purchase or sell securities or other financial products. The content in question and all the information contained therein do not in any way replace individual investor- or investment-oriented advice. No reliable forecast or indication for the future is possible with respect to any presentation or information on the present or past performance of the relevant underlying assets. All information and data presented in this publication are based on reliable sources. However, Bernstein Bank does not guarantee that the information and data contained in this publication is up-to-date, correct and complete. Securities traded on the financial markets are subject to price fluctuations. A contract for difference (CFD) is also a financial instrument with leverage effect. Against this backdrop, CFD trading involves a high risk up to the point of total loss and may not be suitable for all investors. Therefore, make sure that you have fully understood all the correlating risks. If necessary, ask for independent advice.

The Chart Barriers are still holding their own

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21/02/2019 – 12:00: The Bulls are making a run for it – but clearly got repelled by important resistance lines. First, the DAX attempted to break out of its sideways range on Thursday morning. Even the Dow Jones did not make it past an important barrier on Wednesday evening. In addition, performance on the Asian stock markets was mixed. The topic of the day is once again the hope for an agreement in the Trade War between China and the USA. Here are the positive news across the screens.

DAX targets 11,400 points
On the Frankfurt floor, there has recently been a widespread hope that the German benchmark index will now leave its short-term sideways trend for good. The stock market players have their sights set on the 11,400 mark. After an early high of 11,470 points, however, the DAX fell back.
Deutsche Telekom’s figures caused little stir – the Group continues to benefit from the upswing of its US subsidiary. Deutsche Telekom reported a 5 percent year-on-year increase in earnings before interest, taxes, depreciation and amortization to EUR 23.3 billion in 2018, adjusted for non-recurring effects. However, profit fell by more than a third to EUR 2.2 billion; a year ago, a billion-dollar special income from the U.S. tax reform had caused the cash register to ring. Henkel delighted investors with the announcement of the highest dividend in the company’s history. The consumer goods group intends to pay a dividend of 1.85 euros per preferred share. Even though, last year sales shrank minimally, and operating profit rose only slightly.

Dow fails at 26,000 points
Wall Street had shown itself cautious on Wednesday: The Dow Jones index ended the day with a slight gain of 0.2 percent at 25,954 points. No wonder that the Dow failed against the barrier of 26,000 points: at the beginning of December last year, the leading US index had not managed to cross this hurdle – the share price slid by more than 4000 points. And stock market players don’t forget anything. The market-wide S&P 500 also made progress on Wednesday by 0.2 percent to just under 2,785 points. And the Nasdaq Composite closed with a barely noticeable gain of 0.03 percent at 7,489 points.
In Japan, the Nikkei index advanced by 0.2 percent to 21,464 points on Thursday – the fourth consecutive day of gains for the Japanese leading index. However, the Shanghai and Shenzhen stock exchanges each fell by just under half a percent.

Fed apparently holding still
According to the minutes of the most recent interest rate meeting, the Fed is uncertain about the future price; however, in the Fed’s covert speech it appears that the central bank does not intend to raise interest rates for the time being. Low interest rates are water on the mills of the stock market.

New hope in the Trade War
Latest news from China are giving the bulls from the stock exchange some nutrition: According to media reports, the talks that have been underway for months to settle the Trade War are moving forward. According to insiders, Washington and Beijing are working on declarations of intent regarding the most important US demands on the People’s Republic, such as patent rights or agricultural products. The negotiators have also drawn up a list of measures under which Beijing will reduce its trade surplus with the US.

Economic data from the USA
To look out for on Thursday: in the afternoon at 2.30 p.m. a bunch of economic data could move Wall Street and the Frankfurt Stock Exchange, but also currencies and bonds. The new orders for durable goods, the indices of the Philadelphia Fed and especially the first orders for unemployment assistance in the USA will be reported. The Purchasing Managers’ Index for the manufacturing sector will also follow at 3.45 p.m.. As always, particularly disappointing or gratifying figures are likely to cause high volatility.

What to focus on with Oil
At 5 p.m. the EIA (Energy Information Administration) will report the change in the storage volume of US crude oil, specifically the status of the West Texas Intermediate lead location. This could open up interesting opportunities for WTI, petrol futures and US equities in the energy sector.
Behind the scenes there is another drama with oil: the US Congress is currently forming the front line for the so-called NOPEC legislation. This is intended to punish the members of the OPEC cartel up to the expropriation of US assets if they manipulate the oil price upwards. On the Hill, the project was repeatedly postponed in order to not burden relations with Saudi Arabia. But since the Khashoggi murder Riyadh has gambled away considerable credit. Trump has also attacked OPEC several times on Twitter with a view to his voters because of high gasoline prices.
As you can see, the day once again offers a lot of opportunities.

Important Notes on This Publication

The content of this publication is for general information purposes only. In this context, it is neither an individual investment recommendation or advice nor an offer to purchase or sell securities or other financial products. The content in question and all the information contained therein do not in any way replace individual investor- or investment-oriented advice. No reliable forecast or indication for the future is possible with respect to any presentation or information on the present or past performance of the relevant underlying assets. All information and data presented in this publication are based on reliable sources. However, Bernstein Bank does not guarantee that the information and data contained in this publication is up-to-date, correct and complete. Securities traded on the financial markets are subject to price fluctuations. A contract for difference (CFD) is also a financial instrument with leverage effect. Against this backdrop, CFD trading involves a high risk up to the point of total loss and may not be suitable for all investors. Therefore, make sure that you have fully understood all the correlating risks. If necessary, ask for independent advice.

A Bank in Frankfurt

The DAX defies China

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20/02/2019 – 12:00: It’s getting serious now: In the customs dispute between China and the USA, Beijing has decided to take out their torture’s weapons. After all, US President Donald Trump had previously sent out conciliatory signals – and negotiations are continuing. Thus, the DAX was in positive territory in early trading. Fresenius and FMC also put the bulls in a good mood. Wall Street had not sent out any impulses before.

Stagnation on Wall Street
The New York Stock Exchange had remained skeptical on Tuesday. In the course of trading, the Dow Jones had reached its highest level since the beginning of December. But then the prices crumbled, and the Dow recorded a gain of only 0.03 percent to 25,891 points at the closing bell. On Monday there was no trading in the USA because of Presidents’ Day. S&P 500 closed Tuesday with a gain of 0.2 to 2780 points. And the high-tech index Nasdaq 100 also advanced by 0.2 percent to 7067 positions.

Focus on Fresenius in Frankfurt
Meanwhile, the DAX was up by 0.7 percent to 11,390 points in early Wednesday trading. Fresenius and FMC outperformed: Despite difficulties in the clinic business and at its dialysis subsidiary FMC, the Fresenius health care group increased sales and net income slightly more than expected last year. FMC is also creating a buying mood with a share buyback program.

China warns the USA of the global crash
But the Chinese-American customs dispute continues to set the pace on the stock exchange. Every small cough will throw the stock markets back and forth. It’s starting to get exciting here: The Chinese leadership has just sent a clear warning to the USA through a mediator of the Communist Party. The KP newspaper “Global Times” reported, citing unnamed analysts, that any new US tariffs on Chinese goods could bring the world’s stock exchanges to their knees. In detail, the report says: “If the US were to impose higher tariffs and China were to react with tougher countermeasures, this would be a catastrophic blow to the global stock market.”

Of course, the Communists have also noticed that Trump has repeatedly cited Wall Street’s performance as an indicator of his success. No wonder, since gigantic players like Calpers – the Californian pension fund for civil servants – invest in the financial market; in a crash the pension of many voters would be cut. Goodbye, re-election. The S&P 500 has already won around 11 percent this year, the Shanghai Composite more than 10 percent in the plus.

Negotiators from both economic powers met again on Tuesday. Trump expressed confidence and indicated that the deadline set for an agreement at the beginning of March could be extended.
This was also positively received in Japan: In Tokyo, the Nikkei index gained 0.6 percent to 21,431 points. Japanese exports to China fell by more than 17 percent last month compared with the same month last year. Which is also an argument for China and the USA to come to a better agreement. Should Beijing be weakened further, purchases in Nippon are likely to decline even more.

The Fed takes the floor
And so, it continues on Wednesday: In the currency market it could be interesting for EUR/USD, because in the evening analysts will take a close look at the minutes of the Fed’s interest rate meeting at the end of January. They hope to find answers to the question of whether the Fed will tighten its interest rate screw soon or not.

Wal-Mart tops forecasts
Wednesday is also likely to see some movement in US retail equities. Retail giant Wal-Mart topped expectations for Q4, reporting earnings per share of $1.41, compared to $1.33 which was what analyst expected. The bulls will be interested in this sector on Wednesday. In addition, Wal-Mart raised the dividend to $2.12 per share, the 46th consecutive year in which the payout has risen.

Meanwhile, the financial calendar in the USA has thinned out considerably. The Home Builders’ Index is still due for February. In the meantime, almost all 500 companies of the S&P 500 have reported; according to the stock exchange site “Zacks”, about 400 companies reported an average increase in profits of 13 percent and an increase in turnover of 7.5 percent for the fourth quarter in a year-on-year comparison.

As you can see, the numbers at the stock exchange are richly laid out. The only thing that is clear is that volatility will hold. And there are three main topics: China, China and China.

Important Notes on This Publication

The content of this publication is for general information purposes only. In this context, it is neither an individual investment recommendation or advice nor an offer to purchase or sell securities or other financial products. The content in question and all the information contained therein do not in any way replace individual investor- or investment-oriented advice. No reliable forecast or indication for the future is possible with respect to any presentation or information on the present or past performance of the relevant underlying assets. All information and data presented in this publication are based on reliable sources. However, Bernstein Bank does not guarantee that the information and data contained in this publication is up-to-date, correct and complete. Securities traded on the financial markets are subject to price fluctuations. A contract for difference (CFD) is also a financial instrument with leverage effect. Against this backdrop, CFD trading involves a high risk up to the point of total loss and may not be suitable for all investors. Therefore, make sure that you have fully understood all the correlating risks. If necessary, ask for independent advice.

Dax Starts New Trading Week Unchanged – Focus on US Congress Elections

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05/11/2018 – 12:00: After last week’s impressive price rally and against the backdrop of weak data from the Asian stock markets, the German benchmark index is starting the new trading week almost unchanged at 11,522 points.

The still dominant topics on the global stock market are likely to be the ongoing trading dispute between the major powers of the USA and China and the possible solutions to this issue. Market participants are now slowly expecting action in response to the big announcements made in the past.

Against this backdrop, Asian exchanges lost ground at the start of trading on Monday during the session. The Japanese Nikkei Index had to accept a discount of around 1.4 percent. The broader Topix Index lost around 1 percent in value.

A further topic that investors and analysts are likely to be preoccupied with this week is the upcoming US Congressional elections to be held tomorrow, Tuesday. Depending on the outcome of the congressional elections, there may be some movement in the capital market. In both directions!

In the ongoing conflict between Iran and the USA, the American side has today introduced a number of new sanctions. German companies and other countries with export ambitions in Iran are also affected by the new sanctions.

The European common currency has also changed little in parallel to the Dax and is currently quoted at 1.1382 US dollars.

Important Notes on This Publication

The content of this publication is for general information purposes only. In this context, it is neither an individual investment recommendation or advice nor an offer to purchase or sell securities or other financial products. The content in question and all the information contained therein do not in any way replace individual investor- or investment-oriented advice. No reliable forecast or indication for the future is possible with respect to any presentation or information on the present or past performance of the relevant underlying assets. All information and data presented in this publication are based on reliable sources. However, Bernstein Bank does not guarantee that the information and data contained in this publication is up-to-date, correct and complete. Securities traded on the financial markets are subject to price fluctuations. A contract for difference (CFD) is also a financial instrument with leverage effect. Against this backdrop, CFD trading involves a high risk up to the point of total loss and may not be suitable for all investors. Therefore, make sure that you have fully understood all the correlating risks. If necessary, ask for independent advice.

The Italian capital market and negative overseas conditions burden today’s trading

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19/10/2018 – 12:00: After the German leading index had to leave its mark on yesterday’s trading day and closed the day with a minus of 1.1 percent, the targets for today’s trading day are also difficult.

After the German leading index had to leave its mark on yesterday’s trading day and closed the day with a minus of 1.1 percent, the targets for today’s trading day are also difficult.

The US stock markets seamlessly absorbed the poor trading performance in Europe and also had to struggle with some worse than expected balance sheet figures. As a result, the Dow Jones Index fell by 1.3 percent. The broader S&P 500 Index lost around 1.4 percent. Similar scenes took place on the Asian stock markets where the Japanese Nikkei Index lost 1.1 percent in the course of trading.

Like the entire trading week, investors and analysts are focusing on the yields of Italian government bonds, which provide information about the current situation in Italy. Yields on 10-year government bonds rose to around 3.74, the highest level in the past four years. This could cause some investors to have bad memories of the European financial crisis. The background for the rise in bond yields could be the explosive mix of the government in Rome, where the right-wing populist camp currently wants to cut taxes and the left-wing populist camp wants to increase government spending.

As a reaction, the European currency fell in price and is currently trading 0.1 percent lower at 1.1443 USD.
On the technical chart side, the battle for the important 11,800-point mark in yesterday’s Dax trading was won by the bears. For about 18 months this mark served as chart technical important support. The next relevant support level could be the low for the year to date at a level of 11,458 points.

Important notes on this publication:

The content of this publication is for general information purposes only. In this context, it is neither an individual investment recommendation or advice nor an offer to purchase or sell securities or other financial products. The content in question and all the information contained therein do not in any way replace individual investor- or investment-oriented advice. No reliable forecast or indication for the future is possible with respect to any presentation or information on the present or past performance of the relevant underlying assets. All information and data presented in this publication are based on reliable sources. However, Bernstein Bank does not guarantee that the information and data contained in this publication is up-to-date, correct and complete. Securities traded on the financial markets are subject to price fluctuations. A contract for difference (CFD) is also a financial instrument with leverage effect. Against this backdrop, CFD trading involves a high risk up to the point of total loss and may not be suitable for all investors. Therefore, make sure that you have fully understood all the correlating risks. If necessary, ask for independent advice.

Premature Hope

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01/10/2018 – 11:00: Dax with a friendly start in the trading week – focus on Italy and UK .

Against the backdrop of positive specifications from the Asian stock markets, the German Dax is starting the new trading week with tailwind. At 12.318 points, the Dax is currently around 0.6 percent higher.

After the harsh losses at the end of last week, investors seem to be somewhat more upbeat at today’s beginning. This is all the more remarkable as there has not been much change in the current situation. The dominant topics of the trading week are likely to continue to be the upcoming Brexit, in addition to Italy’s debt sustainability. Italian Finance Minister Tria will have to answer questions on the Italian nation’s situation tonight at the Eurogroup meeting in Brussels. In the United Kingdom, Prime Minister May’s conservative camp is discussing the all-dominant Brexit issue at a party conference.

Nevertheless, today the Japanese Nikkei Index was able to climb to 24,306.54 points, its highest level since November 1991. The strongly export-oriented Japanese economy can profit from a sustained weakness of the Yen.
On the economic and economic news side, investors and analysts expect the Purchasing Managers’ Indices for the German industry and the Euro-Zone to be released this week. Various purchasing managers’ indices will also be published across the Atlantic.
The European single currency is currently trading at USD 1.1598, almost unchanged.

Important notes on this publication:

The content of this publication is for general information purposes only. In this context, it is neither an individual investment recommendation or advice nor an offer to purchase or sell securities or other financial products. The content in question and all the information contained therein do not in any way replace individual investor- or investment-oriented advice. No reliable forecast or indication for the future is possible with respect to any presentation or information on the present or past performance of the relevant underlying assets. All information and data presented in this publication are based on reliable sources. However, Bernstein Bank does not guarantee that the information and data contained in this publication is up-to-date, correct and complete. Securities traded on the financial markets are subject to price fluctuations. A contract for difference (CFD) is also a financial instrument with leverage effect. Against this backdrop, CFD trading involves a high risk up to the point of total loss and may not be suitable for all investors. Therefore, make sure that you have fully understood all the correlating risks. If necessary, ask for independent advice.

Premature Hope

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16/08/2018 – 16:00: After the „Risk-Off“ trading yesterday as equities, commodities, Euro & Co. recorded significant price declines on, today the picture clears up again.

In the early hours of the morning, news agencies were tickled by the news that a Chinese delegation would travel to the US at the end of August to resume the dialogue on the trade restrictions, imposed by the Trump government on Chinese goods and services. The invitation was issued on the initiative of the US after the trade talks were abandoned without any result about two months ago. The markets used this message to switch back to “Risk-On” mode.

Equities and commodities rose accordingly, and the Euro recovered from the sharp losses of recent days against the US-Dollar. However, the risk markets are coming out of an oversold situation and so today’s rally may seem to overlook the fact that the talks are not at the highest level of government, but at best at the lower level of government.
The aim of the talks is to find out whether there is a need for discussion at the highest level of government. Let alone the content, because there are concrete things about the possible timeframe so far. So, we are still left with pure hope – and this could soon be disappointed again if the talks are repeated – to prove fruitless. Then it’s gonna be “Risk-Off” again.

Important notes on this publication:

The content of this publication is for general information purposes only. In this context, it is neither an individual investment recommendation or advice nor an offer to purchase or sell securities or other financial products. The content in question and all the information contained therein do not in any way replace individual investor- or investment-oriented advice. No reliable forecast or indication for the future is possible with respect to any presentation or information on the present or past performance of the relevant underlying assets. All information and data presented in this publication are based on reliable sources. However, Bernstein Bank does not guarantee that the information and data contained in this publication is up-to-date, correct and complete. Securities traded on the financial markets are subject to price fluctuations. A contract for difference (CFD) is also a financial instrument with leverage effect. Against this backdrop, CFD trading involves a high risk up to the point of total loss and may not be suitable for all investors. Therefore, make sure that you have fully understood all the correlating risks. If necessary, ask for independent advice.

Turkish Lira continues to crash

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10/08/2018 – 15:00: The collapse of the Turkish lira is going to continue. Only today, Friday, the Lira lost up to 12% in value against the U.S. dollar.

For the current year 2018, the loss in value amounts to 35%. These turbulences are also spreading to the interest rate market. 10-year bonds are now yielding 20%!
The market is increasingly losing faith in the promises made by President Erdogan and his Finance Minister Albayrak, who is also his son-in-law, to boost the economy and “implement a new economic model”. In addition, the ECB is concerned about the exposure of European banks in the Turkish currency. The worries are not entirely unfounded. As reported in the Financial Times, UniCredit (Italy), BNP Paribas (France) and BBVA (Spain) are “significantly exposed” in Turkey. Whether President Erdogan’s appeal helps the lira may be doubted. He suggests “take dollars, euros and gold out of his pillow and bring them to the bank!”

Important notes on this publication:

The content of this publication is for general information purposes only. In this context, it is neither an individual investment recommendation or advice nor an offer to purchase or sell securities or other financial products. The content in question and all the information contained therein do not in any way replace individual investor- or investment-oriented advice. No reliable forecast or indication for the future is possible with respect to any presentation or information on the present or past performance of the relevant underlying assets. All information and data presented in this publication are based on reliable sources. However, Bernstein Bank does not guarantee that the information and data contained in this publication is up-to-date, correct and complete. Securities traded on the financial markets are subject to price fluctuations. A contract for difference (CFD) is also a financial instrument with leverage effect. Against this backdrop, CFD trading involves a high risk up to the point of total loss and may not be suitable for all investors. Therefore, make sure that you have fully understood all the correlating risks. If necessary, ask for independent advice.

Rising yields before the US-Fed meeting

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01/08/2018 – 17:00: The Federal Reserve (Fed) is meeting today (Wednesday) to discuss the future of the interest rates in the US.

The US-economy is booming, which is good for corporate profits (see the results of Apple from yesterday as an example), but the boom is less good for the interest rates. Just on the day of the Fed meeting, the 10year yield on US-Notes rose to the “magic” level of 3.0%. This value was last seen in 2013 – but only for a short period of time. Rising yields have an impact on the real economy through the credit channel as financing costs for companies and consumer credits are rising.
But rising yields also impact the financial markets – in absolute and relative terms. They make share prices more expensive, since present values are falling due to the increased discount-factor and a “low” profit/loss ratio (P/E ratio) for shares suddenly no longer appears to be so “low” with rising yields, because the corresponding P/E-ratio in the bond markets suddenly makes an investment in bonds more attractive.

So it will be exciting to listen to the comments of the central bankers this evening. In chart terms, the US-yield could break out to 3.5%. Incidentally, Germany does not currently have these concerns: The federal bond was last quoted at 3% in 2011, currently the yield is 0.6%. Thanks to the ECB!

 

Important notes on this publication:

The content of this publication is for general information purposes only. In this context, it is neither an individual investment recommendation or advice nor an offer to purchase or sell securities or other financial products. The content in question and all the information contained therein do not in any way replace individual investor- or investment-oriented advice. No reliable forecast or indication for the future is possible with respect to any presentation or information on the present or past performance of the relevant underlying assets. All information and data presented in this publication are based on reliable sources. However, Bernstein Bank does not guarantee that the information and data contained in this publication is up-to-date, correct and complete. Securities traded on the financial markets are subject to price fluctuations. A contract for difference (CFD) is also a financial instrument with leverage effect. Against this backdrop, CFD trading involves a high risk up to the point of total loss and may not be suitable for all investors. Therefore, make sure that you have fully understood all the correlating risks. If necessary, ask for independent advice.

Trade dispute puts pressure on sentiment – Dax with weaker start

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20/07/2018 – 11:00 am: On the last day of the trading week, the leading German index opened with a slight drop of 0.2 percent and currently stands at 12,665 points.

The reason for the opening is, in addition to the negative targets from the USA and the Asian stock markets, the continuing negative trading dispute between the USA and China as well as between the USA and Europe. The recent statements by US President Trump to impose higher import duties on European cars forced the European Union to take further retaliatory action in this case. The mood on the investor side should therefore be described as tense. The Dow Jones Index dropped 0.5 percent in reaction to yesterday’s trading session. The Japanese Nikkei Index suffered a discount of 0.3 percent.

The European single currency recently gained some ground on the currency markets and is currently trading at the previous day’s level of USD 1.1638. On a weekly basis, the current quotation represents a decline of around 0.3 percent.
On the economic and business news side, the situation remains quiet until the publication of Canadian consumer prices over the course of the day.

 

Important notes on this publication:

The content of this publication is for general information purposes only. In this context, it is neither an individual investment recommendation or advice nor an offer to purchase or sell securities or other financial products. The content in question and all the information contained therein do not in any way replace individual investor- or investment-oriented advice. No reliable forecast or indication for the future is possible with respect to any presentation or information on the present or past performance of the relevant underlying assets. All information and data presented in this publication are based on reliable sources. However, Bernstein Bank does not guarantee that the information and data contained in this publication is up-to-date, correct and complete. Securities traded on the financial markets are subject to price fluctuations. A contract for difference (CFD) is also a financial instrument with leverage effect. Against this backdrop, CFD trading involves a high risk up to the point of total loss and may not be suitable for all investors. Therefore, make sure that you have fully understood all the correlating risks. If necessary, ask for independent advice.