17.05.2019 – Daily report. First of all, take profits with you: On Friday morning, investors in Frankfurt kept a low profile for the time being. After the price run of the previous day, many brokers waited for new economic data in the afternoon. In addition, the small downfall at Eurex is imminent. This could shake up online stock trading considerably. The New York targets were otherwise positive. Meanwhile, China was sceptical about Huawei.
Profit taking on the German stock exchange
The morning is not a good time window for the bulls in the DAX. After the moderate late rally on Thursday, investors initially held back in early Friday trading as well. The DAX was recently around three-quarters of a percent weaker. The possible shift of higher US tariffs to European car imports had caused the gain on the previous day. However, the BMW share was conspicuous on Friday: at the end of the DAX, it was quoted ex-dividend, although the falling return on sales and a provision worth billions for alleged antitrust violations also weighed on the share price.
Volatility in the market as a whole has also been created: At noon, the Eurex derivatives exchange is due to experience its so-called small decline. Then, among other things, the May options on the DAX and the Euro-Zone benchmark index EuroStoxx 50 expire. Before this date, major addresses often try to push prices in the desired direction. This sometimes results in surprising, strong swings. So please keep an eye on your trading platform.
Mixed trend in Asia
Asia presented itself mixed. The Nikkei gained 0.9 percent to 21,250 points in Tokyo on Friday. This week, however, the balance sheet stands at minus 0.4 percent. In Japan, Sony caused a sensation with a price jump of 10 percent: The electronics group reported a cooperation with Microsoft and also a share buyback with a volume of the equivalent of 1.6 billion euros.
In China, on the other hand, the bears were in charge. The CSI 300 slipped by 2.5 percent to 3,649 points. The reason: US President Donald Trump has fuelled the customs dispute with China and declared a national state of emergency in telecommunications. This clears the way for measures against the Chinese telecom group Huawei. The communists in Beijing initially reacted verbally: China is determined to protect its national interests, according to an editorial in the People’s Daily.
Confidence in New York
Wall Street had rallied on Thursday thanks to strong economic data and corporate figures. Walmart and Cisco were convincing. Ditto the business climate in the Philadelphia region in May. In addition, the number of first weekly applications for unemployment benefits had fallen more than expected. The US housing market also proved robust in April. All important economic data can be found here: Market Mover
As a result, the Dow Jones benchmark index closed 0.8 percent higher on Thursday at 25,862 points. The S&P 500 advanced 0.9 percent to 2,876 points. The technology-driven Nasdaq 100 rose by 1.0 percent to 7,580 points.
Today’s agenda
In the USA, consumer confidence at the University of Michigan will be published at 4:00pm. At the same time, the leading indicators for the American economy are supposed to be running on the ticker.
The Bernstein Bank wishes you successful trades and a relaxing weekend!
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.