16.04.2019 – Daily report. It can go on like this from the bulls’ point of view: In early trading, the DAX has worked its way up to its highest level since October 2018. Germany’s leading index has almost effortlessly conquered the 12,100 mark. Once again, hopes of an agreement in the customs dispute between China and the USA provided a boost.
DAX in rally mode
After the storm to the 12,000 mark, the German benchmark index seemed to have barely stopped in the rather quiet Holy Week. With an increase of around 0.8 percent, it reached its highest level of 12,115 points. Initially, the ZEW index had hardly any influence on what was happening on the stock market. You can find out how it actually turned out and all other economic data plus forecasts as a service of the Bernstein Bank here on this page: Market Mover
Another small hint for investors who want to invest countercyclically: The volatility index VDAX slipped to 12.13 points in the morning, its lowest level in 15 months. So at the moment, the stock market is looking very rosy. But where are the buyers when everyone has already entered the market?
Customs hope again and again
Once again, China missed out on the strongest stimulus for Tuesday trading in Frankfurt. The CSI 300 Index climbed by 2.8 percent to 4,086 points. The Nikkei also recorded a small high in Tokyo, closing 0.2 percent higher at the 22,222-point a serendipitous number in trading, the Japanese benchmark index had reached its highest level in four months.
Once again, the hope of a solution to the customs dispute between the USA and China provided a buying mood. The news agency Bloomberg reported, citing unnamed insiders, that the People’s Republic was probably prepared to shift duties on US agricultural products to other products. This would allow the US government to sell this to farmers as a success before the 2020 election.
Goldman Sachs disappointed
There had hardly been any tailwind from the New York Stock Exchange. All three leading indices had lost 0.1 percent on Monday. At the closing bell, the Dow Jones stood at 26,384 points, the market-wide S&P 500 at 2,905 points and the composite index of the technology exchange Nasdaq at 7,976 points. The quarterly figures of Goldman Sachs provided sand in the stock market machinery. A weak result in financial market trading caused the investment bank’s profits to collapse at the beginning of the year. In addition, earnings in equity trading fell short of analysts’ expectations.
News in abundance
We are curious to see how Tuesday will continue. In any case, there is an abundance of news that could potentially move the share price.
In the reporting season, Johnston&Johnston, among others, presents figures (around 12.40 p.m. German time). In the late evening, Netflix and IBM will present their results for the first quarter around 10 pm.
At 3.15 p.m., the Federal Reserve will speak on the subject of industrial production and capacity utilization. The forecast for the industry is – 0.1 percent.
The final item is the oil inventory data of the American Petroleum Institute at 22:30.
As you can see, there are enough investment opportunities for every CFD trader – but please only trade with a bank that has a Bafin license!
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