China and US Democrats stop stock market trading

By 25/09/2019News
Das BIP stoppt die Erholung

 

25.09.2019 – Daily report. The bears have taken power on the Frankfurt stage. On the one hand, global trade had to deal with the official initiation of an impeachment trial by the Democrats against US President Donald Trump. On the other hand, The Donald unexpectedly raged harshly against the People’s Republic of China. A deal in the customs dispute is apparently a long way off.

German industry disappointed

The German stock market is going downhill: the DAX fell 1 percent in early trading to 12,184 points. At first, the German industry caused scepticism with new, negative data. The industry’s export expectations fell in September by 2.9 points to minus 5.2 points, according to the Ifo Institute. This means that the mood among German exporters has not been as bad as it has been since the 2009 financial crisis. As always, you can find all the information here: Market Mover

Democrats start trump impeachment

In addition, the stock market participants pondered the latest political developments in Washington D.C. – we have already summarized the possible effects for you in a special report. The US Democrats yesterday announced the initiation of a House of Representatives impeachment procedure against Trump. The latest trigger for this was the alleged abuse of power by Donald Trump – who is said to have urged Ukraine to initiate corruption investigations against the family of the democratic challenger Joe Biden. This should at least increase the uncertainty on the world’s stock markets.

Losses in Asia

The possible impeachment also caused restraint on the Asian stock markets: the Chinese CSI-300 fell by 0.8 percent to 3,871 positions. The Nikkei 225 closed in Tokyo with a loss of 0.4 percent at 22,020 points. The Republicans in the Senate could indeed dismiss the case. But the tug-of-war probably has an influence on the US-Chinese trade dispute. Because if the American president has to waste his time with mud battles, he cannot negotiate any deals. Especially since the Communists in Beijing will closely monitor the matter and perhaps wait for a soft successor in the White House to end the customs dispute in the sense of the People’s Republic. This is likely to put a strain on both the Chinese and American economies.

Tirades against China

Trump himself seems to be aware of this, yesterday he didn’t mince his words about Beijing. At the United Nations General Assembly in New York, he once again accused China of unfair trade practices. The list of charges is long: hoped-for reforms not implemented, state subsidies, currency manipulations, technology theft, theft of intellectual property. Trump became even clearer: he hoped for an agreement in the trade dispute, but would not accept a bad agreement for the USA.

Horror in New York

In view of the latest developments, the US stock market officials put on the handbrake the evening before. In addition, the mood of US consumers had cooled off surprisingly significantly in September due to the trade conflict with China. The Dow Jones fell by 0.5 percent to 26,808 points, the S&P 500 lost 0.8 percent to 2,967 points and the Nasdaq 100 fell by 1.4 percent to 7,710 points.

This is what the day brings

Traders in British pounds can look forward to a new act in the Brexit theatre: British MPs will return to parliament today from their forced break after the British Supreme Court declared the break illegal.
At 4pm the US new building sales are scheduled for August.
And at 4:30 pm the crude oil inventory data (week) are reported to the state Energy Information Administration.
The Bernstein Bank wishes 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.