01.04.2019 – Daily report. What a splendid weekly start for the bulls on the Frankfurt stock market: Strong economic data from the Middle Kingdom has pushed the DAX up. The index cracked the 11,700 mark in early trading. Before the USA and China had reported positive indications concerning the tariff controversy in the world-wide trade. This had already ensured a great first quarter on Wall Street.
DAX reaches 11,700 points
Joy for long investors: Most prices on the trading platform were up on Monday morning. The leading index climbed by around 1.5 percent and passed the 11,700 mark. The Frankfurt Stock Exchange thus continued the positive trend of the first quarter: from January to the end of March, the indicator gained around 9 percent. On Monday, demand was particularly strong for German auto stocks. This is no wonder, as the largest automobile market in the world reported excellent economic data.
Happy customers from China
In March, the mood index for small and medium-sized, mostly private companies collected by the business magazine “Caixin” rose by 0.9 points to 50.8 points. The increase was much stronger than expected: analysts had only forecast a minimal increase to 50.0 points. This is also the strongest level for eight months. At the end of 2018, the Caixin/Markit Purchasing Managers’ Index fell below the 50 mark for the first time since May 2017; in January, it had continued to plummet. A value below 50 points suggests a decline in production.
But the big red dragon had even more good news for investors: the mood is also surprisingly good among the large state-owned corporations. The Purchasing Managers’ Index (PMI) for the industry determined by the authorities rose more strongly than expected in March to 50.5 (February: 49.2) points. Hopes that the turnaround in the People’s Republic’s economic weakness had begun circulated immediately on the floor.
No wonder that equities in Asia rose. CSI 300 gained 2.5 percent to 3,970 points. In the wake of China, the Nikkei index in Tokyo rose by 1.4 percent to 21,509 points. And last but not least, hopes of an agreement in the customs dispute between China and the USA increased. Both delegations had already expressed their optimism before the weekend. The talks are to be continued this week. Correspondingly, Wall Street had also set out for a new highs.
Strong first quarter for Wall Street
In New York, bullish investors were barely able to walk with strength on Friday. The leading index Dow Jones Industrial, for example, went into the weekend with a plus of 0.8 percent to 25,929 points and a weekly gain of 1.7 percent. In the first quarter, the Dow thus recorded a gain of 11.2 percent. Not bad – the strongest first three months since 2013.
There is still room for improvement. The S&P 500 had increased by 0.7 percent to 2834 jobs on Friday. The profit in the first quarter was even 13.1 percent – the best period from January to March in 21 years. And the Nasdaq 100 recorded an increase of 0.8 percent to 7379 points on Friday. The balance of the high-tech index by the end of March: 16.6 percent. The last time there were more gains was in the first quarter of 2012. CFD trading is fun – especially with a bank that holds a Bafin license, where investors can be sure that quality and professionalism are on top of their list.
This is what the day brings
We’re curious to see if this goes on. Interesting trades are again waiting for investors in the afternoon with equities, bonds and currencies. In the USA, the March retail turnover will be published at 14:30 German time. The forecast for February is 0.3 percent.
At 15:45, the European Central Bank will publish its monthly report with details on bond purchases.
At 4 p.m. the latest sentiment data from the US industry (ISM index) will follow. The forecast here: 54.5.
We wish you a very successful day trading!
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