15.07.2019 – Daily report. In the beginning, the DAX also gained: After the summit storm on Wall Street on Friday, German equities followed suit on Monday morning. But even strong data from China did not help the German benchmark index to maintain its strength on Monday.
Frankfurt only follows briefly
Like the pictures are the same: Last week, the German stock market lagged behind the US due to a series of profit warnings. On Monday morning, the leading index in Frankfurt initially climbed to 12,400 points. Only then to lose the profits again. The economic skepticism simply does not want to give way. Real news from Germany was in short supply during the holiday season. What remains is a bizarre announcement from the Munich Stock Exchange: as of today, football fans can subscribe to the shares of the Unterhaching football club for 8.10 euros. Note: The round must be square and the subscription period ends – subject to early closure – on 26.07.2019 at 12:00 noon.
For CFD traders, the ball rolled in Asia on Monday. While the Japanese market remained closed due to a holiday, China gained ground. The CSI-300 rose by 0.4 percent to 3,824 points. Although growth in the Chinese economy declined in the second quarter, it met experts’ expectations. China’s gross domestic product (GDP) rose by 6.2 percent within a year, compared with a plus of 6.4 percent in the first quarter. Industrial production and retail sales rose strongly in June by 6.3 percent and 9.8 percent respectively. The economic stimulus programs launched by Beijing are thus apparently having an effect. All important information can be found here: https://www.bernstein-bank.com/de/research/#Market
Triple record on Wall Street
In New York, bullish investors were able to pop the corks on Friday. The prospect of falling interest rates combined with a solid economy set records for the Dow Jones Industrial, S&P 500 and Nasdaq 100. The Dow climbed by 0.9 percent to 27,332 points. On a weekly basis, the increase amounted to 1.5 percent; since 1 January, it has already risen by a good 17 percent. The S&P 500 climbed by 0.5 percent to 3,014 points on Friday – the collective index closed above the 3000 mark for the first time. The Nasdaq 100 rose by 0.6 percent to 7,943 positions.
Oil glut ahead
There remains an interesting request to speak on the oil market. The statisticians of the International Energy Agency have just warned of an oil glut. According to this, the market recorded an oversupply in the first half of the year, which the Paris-based IEA had not expected. Thus the global oversupply in the first six months of the year was 0.9 million barrels per day, as Oilprice.com quotes the IEA. In the second quarter the plus was still at 0.5 million barrels per day, the IEA had expected a deficit of 0.5 million barrels. This means that the inventories built up in the second half of 2018 were filled even more. In view of the robust oil shale production in the USA, the wave could spill over into the market in 2020. CFD traders should therefore keep an eye on this development.
This is what the day brings
The calendar is rather thinly filled on Monday. The most important date of the day is the Empire State Index, which is scheduled for 14.30 hrs. The economic barometer of the Federal Reserve Bank of New York gives information about details of a possible interest rate cut of the Federal Reserve. The statements of New York Fed chief John Carroll Williams are important.
In addition, the US reporting season will begin in the second quarter. Citigroup is making the start.
Bernstein Bank wishes successful trades!
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