Chart Analyse

 

22.07.2019 – Daily report. Prior to the ECB’s interest rate decision, investors in the German stock market are keeping a low profile. This hesitation is also due to the reporting season. In addition, the conflict in the Persian Gulf continues to smoulder – the UK is considering countermeasures following the fixing of a tanker by Iran.

Frankfurt is waiting

The DAX did not make good progress on Monday morning. Germany’s leading index recently held its ground at 0.2 percent, just under 12,300 points. While the small tripping steps certainly open up opportunities in CFD trading, online stock trading is rather frustrating. Brokers said it was unclear whether central bank chairman Mario Draghi would lower interest rates on Thursday and give the go-ahead for further bond purchases. Ergo nobody wants to position himself on the wrong side yet.

Tension over Tehran

CFD traders also observed developments in Iran on the stock market and in the oil market. London is currently considering countermeasures against Tehran, Downing Street 10, over the fixing of a British tanker according to the Ministry of Defence. Foreign Minister Jeremy Hunt wants to inform Parliament this afternoon about the current situation. According to British media reports, the Iranian state’s assets will initially be frozen. Military actions had previously been ruled out by London. Meanwhile Iran continues to detain the oil tanker “Stena Impero” flying the British flag. The Revolutionary Guards had stopped the ship on Friday in the Strait of Hormus in the waters of Oman.
Meanwhile, Israel has sent a warning signal to Tehran with a drone attack. According to the Debka Files website, a Harop drone bombed the pro-Iranian Hash Dhaabi militia in Iraq on Friday. According to the Iranian Revolutionary Guards, there were no victims in the attack northeast of Baghdad. According to local reports, however, Iranian and Hezbollah officers were killed. The lesson: Iran is also within reach of the Israelis. There is also a question: Will the USA, Saudi Arabia and the United Arab Emirates stand idly by when Iran spreads through Shiite militias in Iraq? Yemen, Lebanon, Syria, Iraq – Tehran is continuously expanding its bases.

A new stock market star in China

Meanwhile, investors in China celebrated the launch of a new stock market segment for technology companies. The “Star Market” mainly lists high-tech companies. The 25 companies included in the list more than doubled their average share prices at the start on Monday. On the other hand, the CSI-300 apparently lost capital. The index with the 300 largest companies on the Chinese mainland closed 0.7 percent lower at 3,782 points. Increasing scepticism was also caused by the unrest in Hong Kong.
In Tokyo, the Nikkei 225 closed 0.2 percent lower at 21,417 points. Over the weekend, Prime Minister Shinzo Abe’s party had clearly won the upper house election. However, the Liberal Democratic Party (LDP) and its smaller coalition partner Komeito failed to achieve the two-thirds majority required for a constitutional amendment.

New York increasingly sceptical

In New York, however, disappointment could soon hit the stock market. It is considered certain that the Federal Reserve will lower the key interest rate at the end of the month. However, it is unclear how strong. The Dow Jones Industrial closed 0.3 percent lower at 27,154 points, while the Dow lost 0.7 percent last week. The S&P 500 slipped by 0.6 percent to 2,977 points on Friday. The technology-driven Nasdaq 100 lost 0.9 percent to 7835 positions.

This is what the day brings

On Monday there are only a few really stock market relevant dates.
At best, the CFNA index for June – the Chicago Fed’s National Activity Index – could cause a stir at 2:30 pm.
The Bernstein Bank wishes you successful trades!

Important Notes on This Publication:

The content of this publication is for general information purposes only. In this context, it is neither an individual investment recommendation or advice nor an offer to purchase or sell securities or other financial products. The content in question and all the information contained therein do not in any way replace individual investor- or investment-oriented advice. No reliable forecast or indication for the future is possible with respect to any presentation or information on the present or past performance of the relevant underlying assets. All information and data presented in this publication are based on reliable sources. However, Bernstein Bank does not guarantee that the information and data contained in this publication is up-to-date, correct and complete. Securities traded on the financial markets are subject to price fluctuations. A contract for difference (CFD) is also a financial instrument with leverage effect. Against this backdrop, CFD trading involves a high risk up to the point of total loss and may not be suitable for all investors. Therefore, make sure that you have fully understood all the correlating risks. If necessary, ask for independent advice.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81% of retail investor accounts lose money when trading CFDs with this provider.
You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.