02.04.2019 – Daily report. Investors on the German stock exchange taking a deep breath. After the strong start to the week, they are digesting the profits. The DAX oscillates indecisively. Not many scheduled market-moving news are to be expected today, Tuesday. Nevertheless, you should keep an eye on your regular market updates because of the customs negotiations between China and the USA.
Quiet trading
On such an unspectacular day, professionals at best enjoy using CFDs – because they can earn good money with even the smallest price movements. Global trading has been mostly at a standstill. Many brokers were waiting at the sidelines. In the morning, the DAX was trading largely unchanged at 11,700 points.
DAX hangs below the 200-day line
And there is a good reason for this: Many investors look hypnotized at the 200-day line, which runs slightly down. It is currently hovering at 11,716 points. And behold, the marker acted as a resistance yesterday. If you look at the candles in the day chart, you will see that the ascent ended pretty much at the 200-day line. By the way, the DAX sent out another interesting chart signal with its strong performance yesterday. Between 11,750 and 11,600 gapes a small price gap. This gap could normally be closed again at short notice.
No push from Asia and London
In any case, there were no thrust factors at last. There is no solution to the Brexit dispute. The British Parliament has once again rejected all alternatives to Prime Minister Theresa May’s Brexit deal. Investors in Asia had also waited: The Nikkei closed unchanged at 21,505 points. In China, the CSI300 lost 0.3 percent to 3,962 points. Every half-sentence from the negotiating delegations in the Chinese-U.S. customs dispute can move prices strongly here and on the global financial markets.
Wall Street enormously firm
The New York Stock Exchange presented itself very firmly on Monday. The mood in US industry had surprisingly improved significantly in March. In addition, construction spending in February had risen more strongly than had been hoped for. In the People’s Republic of China, sentiment data had previously been convincing – both from small and medium-sized, mostly private industrial companies as well as from large state-owned corporations. You can read all the data here: https://bernstein-bank.com/de/research/#Market
The Dow Jones closed yesterday 1.3 percent higher at 26,258 points. The S&P 500 climbed by 1.2 percent to 2,867 points. Both indices thus reached their highest level since October 2018. The Nasdaq Composite rose by 1.3 percent to 7,828 points. Here, too, a brief look at the basics of the chart technique: all three indices tore gaps in the chart with yesterday’s movements. You should keep an eye on them. What happens next could be decided at 2.30 p.m. German time: Then the core rate for incoming orders for durable goods will be reported in February; forecast: 0.2 percent.
Oil boom
There remains a short detour to the oil market. Analogous to the world’s stock markets, the oil price has boomed. The price of black gold rose by 33 percent in the first quarter. Parallel to the economic recovery signals from China, the declining number of US oil wells played a role here. And of course OPEC’s cut in production. Tonight at 10.30 p.m., the report of the American Petroleum Institute will provide information about the stocks in the USA. We wish you a very successful day trading!
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