14.05.2019 – Daily report. Following the share price storm on Monday, shares in Frankfurt have recently recovered slightly. Conciliatory tones from Washington in the customs dispute with China caused a subdued buying mood. In addition, investors analyzed fresh quarterly figures from Germany. Traders also kept an eye on the oil price.
Quarterly financial statements in Frankfurt
After the strong minus on Monday, German investors hesitantly stocked up on equities again. The DAX climbed slightly, but was still just under 12,000 points. However, the worse than expected ZEW Indicator of Economic Sentiment dampened the buying mood. All economic data can be found here: Market Mover
Fresh quarterly figures ran through the tickers. Allianz reported a surprisingly strong increase in profits at the beginning of the year. ThyssenKrupp showed no clear trend – the industrial and steel group had reported a loss for the second quarter. Merck reported somewhat weaker than expected quarterly figures. Bayer was under pressure: After another defeat in court in a US glyphosate lawsuit, the stock temporarily slipped to its lowest level since 2012. Bayer is to pay more than two billion dollars in damages.
Optimism in Washington
However, the decisive issue again was the customs dispute. Despite yesterday’s escalation in the customs dispute, US President Donald Trump spread optimism. He was confident that he would find a solution to the trade war with China. He announced a meeting with Chinese President Xi Jinping at the G20 summit in Osaka at the end of June. Furthermore, there was still no decision on a further round of US punitive tariffs on Chinese goods. US futures then rose moderately. At 2.30 p.m. German time, the American import and export prices will provide information on how US foreign trade is going today.
Sales strike in Asia
Investors in Asia were reassured little by Trump’s intervention, especially as the stock market digested bad news from China. In the People’s Republic, car sales in April were down 17.8 percent on the previous year, according to the manufacturers’ association CAAM. This was the tenth month with a minus in a row. Buyers are apparently waiting for government incentives to buy – or they fear an economic crisis as a result of the customs dispute with the USA. The Chinese CSI 300 lost 0.6 percent to 3,645 jobs. In Tokyo, the Nikkei also closed 0.6 percent lower at 21,067 points.
Crash in New York
On Monday, US indices marked their worst day since early January. The Dow Jones closed 2.4 percent lower at 25,324 points. The S&P 500 fell 2.4 percent to 2,811 points. High-tech stocks were hardest hit: the Nasdaq Composite fell by 3.4 percent to 7,647 points. Apple slipped almost six percent. The group needs China as a growth market and also suffered a defeat in a US antitrust case.
Oil in the focus of traders
Meanwhile, the oil market remains exciting. According to the Wall Street Journal, the USA blames Iran for the sabotage of four tankers off the coast of the United Arab Emirates. Meanwhile, Russia has sent mixed signals as to whether it wants to continue to participate in OPEC’s cut in production. Perhaps OPEC will comment on this when the cartel presents its monthly report at 1 p.m. German time. Otherwise the data on US crude oil stocks of the American Petroleum Institute are due at 10.30 p.m. German time.
The Bernstein Bank wishes you successful trades!
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