The Italian capital market and negative overseas conditions burden today’s trading

19/10/2018 – 12:00: After the German leading index had to leave its mark on yesterday’s trading day and closed the day with a minus of 1.1 percent, the targets for today’s trading day are also difficult.

After the German leading index had to leave its mark on yesterday’s trading day and closed the day with a minus of 1.1 percent, the targets for today’s trading day are also difficult.

The US stock markets seamlessly absorbed the poor trading performance in Europe and also had to struggle with some worse than expected balance sheet figures. As a result, the Dow Jones Index fell by 1.3 percent. The broader S&P 500 Index lost around 1.4 percent. Similar scenes took place on the Asian stock markets where the Japanese Nikkei Index lost 1.1 percent in the course of trading.

Like the entire trading week, investors and analysts are focusing on the yields of Italian government bonds, which provide information about the current situation in Italy. Yields on 10-year government bonds rose to around 3.74, the highest level in the past four years. This could cause some investors to have bad memories of the European financial crisis. The background for the rise in bond yields could be the explosive mix of the government in Rome, where the right-wing populist camp currently wants to cut taxes and the left-wing populist camp wants to increase government spending.

As a reaction, the European currency fell in price and is currently trading 0.1 percent lower at 1.1443 USD.
On the technical chart side, the battle for the important 11,800-point mark in yesterday’s Dax trading was won by the bears. For about 18 months this mark served as chart technical important support. The next relevant support level could be the low for the year to date at a level of 11,458 points.

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