18.03.2019 – Daily report. The DAX remained just below the 11,700 mark in early Monday trading. The main topic in Frankfurt is the merger talks between Deutsche Bank and Commerzbank. A report on a delay in the Chinese-American customs agreement caused scepticism.
Banks at the Top of the Index
Brokers were delighted: Deutsche Bank shares were listed at the top of the DAX in early trading, while Commerzbank also recorded the strongest gain in the MDAX. On Sunday, the two banks announced the start of merger talks. The news did not really come as a surprise, but it is interpreted as a strengthening of the German banking centre. This was reason enough for the DAX to hold itsself on a high level- last week it peaked at over 11,700 points, its highest level since mid-October.
Newcomers to the MDAX
The new appointments to the MDAX will take effect as of today: Knorr-Bremse and Dialog Semiconductor are now included in the index of mid-caps. Salzgitter and Schaeffler had to be submerged in the SDAX for this purpose. In the DAX, everything remains the same.
Profits in Asia
In Tokyo, the Nikkei index defied negative economic news on Monday: the index gained 0.6 percent to 21,584 points. Japanese exports fell by 1.2 percent year-on-year in February to 6.38 trillion yen, or around 50 billion euros. This is a stronger minus than expected and the third in a row. Investors were overwhelmed by the joy at the announcement of new economic stimuli in China, which should also boost imports from Japan. The CSI 300 rose by 2.9 percent to 3,852 points.
Customs Agreement Probably Delayed
China and the USA put a small damper on the bulls: According to a report in the “South China Morning Post”, the customs agreement will probably be postponed until June. According to insiders, one obstacle is the security measures to ensure compliance with the agreement. Within US President Donald Trump’s team, there are differences of opinion. It remains to be seen whether there will simply be a basic agreement to be sold as a success, or whether effective monitoring measures will actually be implemented to control the Chinese.
According to media reports, the deal was initially to be signed at a summit in Mar-a-Lago, Florida, at the end of March. But the US ambassador to China, Terry Branstad, explained in the meantime that the meeting would be postponed by one month. Now it will be summer.
Correspondingly, the indication for the Dow Jones was recently about 0.2 percent lower at 25,817 positions. On Friday, the Dow recorded a plus of 0.5 percent to around 25,849 points. The US leading index thus gained almost 1.6 percent over the course of a week. The market-wide S&P 500 went into the weekend on Friday with a plus of 0.5 percent at 2822 points, and the Nasdaq 100 rose by 0.9 percent to 7307 points.
Decisive Oil Producers
Interesting news triggered from the oil market: The Russian oil minister Alexander Novak stressed in an interview with the television station CNBC in Baku that Moscow would fully support OPEC’s cuts in production in the coming weeks. The cartel and associated states will meet again in mid-April to review the cuts. At the beginning of the year, both sides had agreed to pump 1.2 million barrels less oil per day over a period of six months. So good arguments for a possibly rising oil price, the question is whether the US will take countermeasures.
Otherwise the week starts rather slowly from a reporting point of view. We will keep you informed.
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.