08.04.2019 – Daily report. Little stopper for the stock market cops: Bad news from the German economy and the automotive industry slowed down the DAX in early Monday trading. The leading index remained slightly below the 12,000 mark. Brokers in Frankfurt are waiting for new boost from upcoming data by the USA.
Again and again fear of the economy
German exports fell more sharply in February than at any time in a year due to the weaker global economy. Exports slipped by 1.3 percent compared to the previous month, as reported by the Federal Statistical Office on Monday. Most analysts had only forecast a minus of 0.5 percent. “The air is out,” commented Volker Treier, head of foreign trade at the German Chamber of Industry and Commerce (DIHK). ” There is little hope that this will change in the coming months. “
Car manufacturers in the EU’s sights
The EU Commission suspects BMW, Daimler and VW of violating European antitrust law. Even if these were not price agreements, the car manufacturers would have avoided competition by reducing exhaust emissions through agreements. They had thereby denied consumers the opportunity to buy more environmentally friendly vehicles.
Mixed signals from overseas
In Asia, investors had shown little buying mood in the morning. In Tokyo, the Nikkei closed 0.2 percent lower at 21,772 points. The CSI 300 also fell by 0.4 percent to 4,044 points.
Prior to this, Wall Street had provided a moderate tailwind. The Dow Jones closed with a slight gain of around 0.2 percent to 26,425 points. Thus achieved a gain of 1.9 per cent in the previous week. Now the Dow is only a good 500 points below its peak at the beginning of October 2018. The market-wide S&P 500 had left trading on Friday with a gain of 0.5 percent at 2893 points. And the Nasdaq 100 went into the weekend with a plus of 0.5 percent at 7579 points.
The rise was driven by strong data from the US labor market: 196,000 new jobs were created outside agriculture in March. Analysts had expected an average of only 177,000 new jobs. The unemployment rate remained at 3.8 percent.
Oil boom continues
However, the question arises as to whether the oil price is not dampening hopes of an economic upturn. Oil has climbed to its highest level in five months. The main reason for this is the curtailment of production in the OPEC states and the allied export countries. In addition, the US sanctions against Iran and Venezuela are scaling back supply.
This is what the day brings
Now the stock market is looking at the order intake for the US industry, which is to be reported today, Monday, at 16.00 hrs.
It is questionable whether the stock market will take a large position before the start of the reporting season. The big bank JPMorgan Chase will make the start among the blue chips on Friday before the opening of the stock exchange.
Today at least Sears gives a first taste of the situation in the retail sector.
Meanwhile the market researchers of Data Trek Research warned in their interview with CNBC against gruesome quarterly figures. At present, expectations for the results are minus 3.9 percent – the first negative three months since the second quarter of 2016.
So let’s wait and see – Bernstein Bank wishes you good trades!
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