14.03.2019 – Daily report. Tug-of-war between bulls and bears – and obviously the optimists gain the upper hand. The DAX is on its way up on Thursday. On the one hand, positive economic data from the USA initially supported the market on Thursday. On the other hand, negative figures from China were ticking over the screens. But for many investors this is only an indication that there must be a solution to the customs dispute. And then there is the seemingly endless story of Brexit. In plainwords: In a confusing situation, global trade still relies on solutions.
DAX over 11,600 – Lufthansa with disappointing figures
Apparently the DAX has decided to go on a climbing tour. In early trading, it rose by 0.5 percent to 11,631 points. In the wake of the turbulences around Boeing, Lufthansa shares were listed at the end of the index. And, above all, weak quarterly figures caused the share price to plummet: consolidated net profit fell by 39 per cent to 343 million euros between October and December. The outlook was also disappointing: the planning for capacity growth in the summer was halved without further ado.
Of course, the stock market also kept an eye on the currency market, specifically the British pound. On the one hand, the British do not want to leave the EU without a final deal, that is the core statement of the brief vote on Wednesday evening. On the other hand, Parliament has so far rejected all agreements. This is how standing still looks like. What comes next? A new vote, of course.
The British members of parliament will vote this Thursday on a postponement of the Brexit. Prime Minister Theresa May wants parliamentarians to decide between a short and a long postponement of the EU resignation. The precondition for an extension of the deadline: all 27 other EU Member States must agree to it. The planned exit date is 29 March. Until then, the volatility will at least remain stable, which might create chances for CFD traders.
China’s economy paralysed
In Asia, many brokers pressed the sell button on Thursday. The CSI 300 lost 0.7 percent to 3698 points. The Japanese Nikkei 225 closed with a loss of minimal 0.02 percent to 21 287.02 points, hardly changed. Skepticism was caused by news from China: Industrial production has grown more slowly since the beginning of the year than at any time in 17 years. The increase was only 5.3 percent. Domestic demand is falling, while the customs dispute with the USA is slowing down foreign trade.
US President Donald Trump also put a finger into the wounds: He was in no hurry to conclude a deal. An agreement should be in order, otherwise there will be none, Trump said in the White House on Wednesday. A little hint to Beijing.
Good mood in New York
On Wednesday, Wall Street had closed in positive terrain. The Dow Jones rose by 0.6 percent to 25,703 points at the closing bell. The S&P 500 recorded a plus of 0.7 percent to 2811 points. And the Nasdaq 100 even advanced by 0.8 percent to 7257 points. In fact, the USA does not seem to need a deal in the customs dispute as urgently as China: orders for durable goods in the USA had risen surprisingly strongly in January, with forecasts showing a minus. In addition, construction spending climbed faster than expected at the beginning of the year.
All important data at Bernstein Bank
If you would like to know how the US economic data actually turned out, you can conveniently take a look on the Bernstein Bank website: Just follow the menu item “Research”. In addition to forecasts and current figures, you will also find the times of the expected publications. A small service from Bernstein Bank.
The top event on Thursday: At 1.30 p.m. German time the first applications for unemployment benefits in the USA are published. This could set the futures and the DAX in motion.
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