Dax recovering – Focus on US retail sales

03/14/2018 – 11:45 am: The German leading index is about to catch up yesterday’s setback. Once again it was US President Donald Trump who caused considerable unrest on Tuesday. In addition to new comments on possible trade sanctions, this time with China in the spotlight, the dismissal of former Foreign Minister Rex Tillerson in particular was a burdening factor. Like the recently retired economic advisor Gary Cohn, Tillerson was one of the last remaining voices in Trump’s government that stood for a more liberal and cosmopolitan line.

The reaction on the global stock markets was correspondingly harsh. From Europe and the USA to the Far Eastern stock markets, price movements were subsequently dominated by markdowns. The Dow Jones lost 0.7 percent at the end of trading, the technology exchange Nasdaq lost 1.2 percent and the S&P 0.6 percent. This negative trend was then followed by the stock markets in China and Japan: the Shanghai Composite fell by around 0.5 percent, while the leading Japanese Nikkei index recorded a drop of 0.9 percent at the close of trading.

At midweek, investors are looking in particular at the publication of European industrial production in January and US retail sales in February. The latter is regularly attracting a great deal of attention, as American consumption is one of the main pillars of the US economy. Against this backdrop, these figures also have a strong impact on the Federal Reserve’s monetary policy.

The Dax can rise by 0.4 percent to 12,265 points at the moment. This means that the stock market barometer can be found between the psychologically and chart-technically relevant support at 12,000 points and the resistance region in the range of 12,500 points. The Euro currently trades at 1.2366 USD with a moderate minus of 0.2 percent. Gold loses 0.1 percent to current $1,325 USD per troy ounce.




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