12.04.2019 – Daily report. From today on the excitement on Wall Street will be at its peak just like always during earnings season: With Wells Fargo and JPMorgan Chase, the first two heavyweights will ring in the US balance sheet. The results of the major banks in the first quarter are regarded as an important indicator of the economic situation in the USA. Futures are therefore likely to move. In Frankfurt, on the other hand, things remained quiet. Nobody wanted to position themselves wrong.
DAX just under 12,000
In view of the figures of the two US financial groups due before the opening of Wall Street, Germany was cautious. The DAX nevertheless worked its way up to just under the 12,000 mark and tended slightly higher. The leading index thus climbed to its annual high of 12,029 points.
Is the subsidy cut crumbling?
Most of the movement took place recently in the oil market. Yesterday, Thursday, a sharp rise in US inventories caused a setback in oil prices. There was also speculation that the OPEC front was crumbling in terms of production cuts. Reuters reported that some officials were considering not extending the 1.2 million barrels per day production cut beyond June. The move was actually planned until the end of the year. Now, however, the US sanctions against Venezuela and Iran were quicker than expected. The Internet medium Oilprice.com, which focuses on the energy market, even asked whether this was the end of the OPEC deal. Especially since Russia’s President Vladimir Putin had said a few days ago that he did not want an uncontrolled rise in the price of oil.
Mixed situation in Asia
Investors in Asia had provided mixed specifications for the stock market. The CSI 300 with the most important shares of the People’s Republic of China fell by 0.2 percent to 3,989 points. In March, exports from China had increased significantly. However, imports fell. In Tokyo, the Nikkei 225 gained 0.7 percent to 21,871 points. The main reason for this was fast retailing: the share price rose by more than 7 per cent, but the Group still expects a record result thanks to strong demand in China.
The tensions are quietly rising in New York the night before, Wall Street had already taken it easy. The Dow Jones Industrial closed almost unchanged at minus 0.1 percent to 26,143 points. The S&P 500 also remained unchanged in percentage terms at 2,888 points. And high-tech stocks in the Nasdaq 100 fell by 0.2 percent to 7595 points. With such sluggish volatility, only CFDs with their leverage effect offer good yield opportunities. So stay on the ball with Germany’s best CFD brokers!
If the US balance sheet season were not just around the corner, there would certainly have been more movement in New York. Because the initial applications for unemployment benefits fell below the magic mark of 200,000 at 196,000, the situation on the job market is better than expected. For the stock market, this is actually a “goldilocks” situation, an all-round carefree paradise for happy goldilocks: Interest rates are low, unemployment is also low and wages are rising only moderately. The consumer climate index of the University of Michigan will show today from 4 p.m. whether the rosy situation will continue like this. As service for you the Bernstein bank compiled the most important dates here at: Market Mover
We wish you a good day trading!
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.