Dax can curb the heavy weekly losses

By 22/06/2018Home-news, news

22/06/2018 – 11:00 am: At the end of a week of selling pressure, the leading German index may slow down its losses. Nevertheless, the Dax ended its worst trading week since March this year. At 12.542 points, the index is currently up by around 0.4 percent.

In addition to the open trade dispute between the USA and China and Europe, the main negative factors are the resurgence of the European single currency. Against this backdrop, investors sold their shares this week and brought the Dax a respectable minus of a good 4 percent. In the previous week, the Dax was still able to pass the 13.000 point mark. At the moment, the 12.500 point mark seems to provide some support.

The Euro can make strong gains on today’s trading day and is up half a percent at USD 1.1645. Such a constellation may cause stomach ache for export-oriented companies from the Euro zone as their products become more expensive abroad. Currently, however, at least the German economy still seems to be stable. Recent economic data in the form of recently published purchasing managers’ indices gave investors and analysts a positive surprise. The purchasing managers’ index for the services sector, for example, rose by 1.8 percent to 53.9 points. A value above the 50 mark is interpreted as a positive signal for an expansion of production activities.

As far as commodities are concerned, investors are concentrating on today’s meeting of the OPEC nations. Today’s meeting could focus on the decision to increase production. In the run-up to the meeting, the oil price of WTI (West Texas Intermediate) rose by 1.1 percent, so that one barrel is currently traded at 66.24 US dollars.

 

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