Powerless recovery attempt

Chart Bernstein Bank

 

12.08.2019 – Daily report. The DAX makes a new attempt to move north. But it is not really convincing. At the beginning of the week, China will determine what happens, although there will be no really dominant news. After all, US President Donald Trump had sent out cautiously positive signals in the customs dispute.

Slight minus in Frankfurt

The shareholders did not make a really energetic start to the new week. On the trading platform, the regular market updates were very limited. Although the DAX rose moderately at the beginning, it recently fell by 0.1 percent to 11,687 points. Chart technology is still slowing the buying mood from below: the 200-day line in the DAX should definitely hold – it is currently trading at 11,643 points.

Focus on Ifo and Italy

A study by the Munich Ifo-Institute attracted some attention. According to the study, the climate in the global economy deteriorated in the third quarter due to the various trade conflicts. The Ifo barometer fell by a whopping 7.7 points to minus 10.1 points. Almost 1200 experts from 116 countries were surveyed. This makes the assessment more negative than it has been since the beginning of 2017.

On the stock market and in the bond market, investors otherwise kept an eye on developments in Italy. The Senate discussed the Lega’s motion of censure against Prime Minister Giuseppe Conte. The Lega hopes for its own stable majority in a new election. This would mean an even harder course of isolation in terms of the refugee crisis. And probably also new trouble with the EU Commission in the matter of national debt. Which in turn would cause a stir with Italian government bonds.

Profits in China

In Asia, investors ignored the new clashes between demonstrators and Hong Kong police at the weekend. The CSI-300 recovered to 3,699 points, an increase of 1.8 percent. The reason: the Chinese Securities and Exchange Commission lifted the ban on short selling for several hundred shares, which gave the market new confidence. The stock exchange in Tokyo had closed because of the day of the mountain. Trading was also cancelled in Singapore, India, Malaysia, the Philippines and Thailand.

Timeout in New York

Investors on Wall Street had first digested the previous day’s gains on Friday. The Dow Jones index closed 0.3 percent lower at 26,287 points. The market-wide S&P 500 fell 0.7 percent to 2,918 points. And the Nasdaq Composite fell by one percent to 7,959 points.
US President Donald Trump provided support on Friday afternoon. He said that the trade talks with China were “going very well”. However, he pointed out that the USA was not yet ready for an agreement.

This is what the day brings

CFD traders and investors in online stock trading are more likely to sit back today. The day doesn’t bring any really important dates. Trading small price movements in a market that is hopefully undisturbed by external factors is not so bad.

The Bernstein Bank wishes you successful trades!

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