20.03.2019 – Daily report. A bitter blow for the Frankfurt Stock Exchange on Wednesday: Bayer stock plunged in the double-digit range, with the DAX heavyweight pulling the leading index down. Otherwise, investors are largely motionless on the sidelines. In the evening the Federal Reserve takes the floor.
DAX below 11,700 Again
Not a nice day for the bulls: The DAX started early Wednesday trading with a minus of 0.9 percent, so the index dropped back below the 11,700 mark with a drop to 11,678 points. The previous day, the index reached 11,823 points, its highest level since last October. Most stocks were largely inconspicuous, with little movement overall. Which shouldn’t bother you when you trade CFD, because then you can also use small swings thanks to the leverage.
Bayer Loses in Double Digits
Only one share stood out in the DAX: Bayer. The stock fell by 12 percent at times. At almost 7 percent, Bayer is one of the heavyweights in the DAX. The Bayer Group suffered a defeat in a subtrial of its U.S. subsidiary Monsanto over possible cancer risks of the glyphosate-containing weed killer Roundup. The San Francisco jury unanimously concluded on Tuesday that Roundup was a “significant factor” in the development of a plaintiff’s cancer. This could therefore be expensive for the Bayer Group, which wanted direct market access for itself with the purchase of Monsanto, but certainly no legal disaster. In the next phase of the lawsuit, the question of the amount of damages will be clarified.
Hardly Any Movement in Asia
In Asia, investors moved sideways on Wednesday morning. The Chinese blue chip index made up for temporary losses and closed unchanged at 3,835 points. The Japanese Nikkei index climbed slightly by 0.2 percent to 21,609 points. Of course, investors’ hopes continued to revolve around the rapid conclusion of a tariff agreement between China and the USA. That was not what it looked like in the end. Now the “Wall Street Journal” reported with reference to insiders that next week a high-ranking US delegation will travel to Beijing. The goal is an agreement by the end of April.
New York without Direction
Brokers in the USA had already waited for today’s big Fed event on Tuesday. The Dow Jones Industrial fell slightly into late trading and closed 0.1 percent lower at 25,887 points. The market-wide S&P 500 was almost unchanged at 2833 points. In contrast, high-tech stocks in the Nasdaq 100 rose by 0.3 percent to 7349 points. Overall, there was therefore no clear line in New York.
Everything is Waiting for the Fed
No wonder, because nobody wants to position themselves on the wrong side before the big news. Hardly any broker expects the Fed to take an interest rate move. Investors are particularly interested in the US Federal Reserve’s projections. These were last presented in December: At the time, the Fed had signaled three further interest rate hikes by the end of 2020. Most analysts assume that this forecast will now be reduced to one or two rate hikes. So this evening at 7 p.m. German time it will be exciting. Otherwise, the day will deliver few really moving dates. At 15.30 o’clock the US data to the crude oil stocks in the USA over the screens.
New Brexit Loop
Meanwhile, traders are waiting in the British pound of things in Brexit tug-of-war. According to media reports, the hapless Prime Minister Theresa May wants a postponement of the resignation by three months, actually planned for 29 March. She wants to send a letter to Brussels. In the meantime, she wants to bring a final agreement through parliament. We look forward to seeing what happens next and wish you every success with your trades!
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