Good mood in Frankfurt

Boerse chart

 

07.06.2019 – Daily report. Everything is so rosy on the German stock market: pushed by a firm Wall Street, the DAX remained in the profit zone on Friday morning. The leading index defied negative data from the German economy. Now a possible agreement between Mexico and the USA is supporting prices. In addition, US interest rate fantasies continue to have an effect.

DAX defies poor economic data

Buying mood among German shareholders – the DAX has recently remained above the 12,000 mark, posting an increase of 0.8 percent.
Not even poor economic data from Germany clouded the positive mood: German exports in April fell by 3.7 percent compared to the previous month, according to the Federal Statistical Office. This is the sharpest decline since August 2015. Imports shrank by 1.3 percent. Companies also reduced their production in April as sharply as they last did in August 2015, as the Federal Ministry of Economics added. As always, you can find all economic data here:Market Mover

Profits in Asia

Investors also took action in Asia. The Chinese stock exchanges remained closed due to the dragon boat festival. But the Chinese central bank stressed that it could support the economy with monetary policy interventions if necessary. The Nikkei 225 in Tokyo took its leave into the weekend with a plus of 0.5 percent at 20,885 points.
New York closes in positive territory
Prices on Wall Street also climbed on Thursday. The Dow Jones index closed with a gain of 0.7 percent at 25,723 points. The S&P 500 rose by 0.6 percent to 2,843 points. And the Nasdaq Composite rose by 0.5 percent to 7,615 points.

Mexico now supports prices

Mexico was in a good mood. Washington is apparently considering postponing the imposition of customs duties in the trade and border dispute with Mexico. Mexico wants more time for negotiations, the news agency Bloomberg reported, citing insiders. Actually, the special duties are supposed to take effect on Monday. But now Mexico wants to move 6,000 national guardsmen to the border in order to contain the influx of illegal immigrants into the USA. In addition, Mexico froze the bank accounts of 26 human traffickers.
By the way, politics could offer CFD traders interesting opportunities in the Mexican peso. The secondary war in Mexico is also proof that the clear edge of the USA in politics and the swinging of the punitive tariff whip to enforce national interests can work. Many investors, of course, are making a connection to China.

This is what the day brings

The view remains on a quite tidy appointment calendar. At 2.30 p.m. the focus is on the official US labour market report. Will the Federal Reserve intervene with an interest rate cut in the event of bad job data or not? The reactions of the market will provide information on this – so keep an eye on the regular market updates and keep direct market access open.
Bernstein-Bank wishes you successful trades and a sunny 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.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% of retail investor accounts lose money when trading CFDs with this provider.
You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.