05.02.2020 – Daily Report. Yeah, there is such a thing: In the midst of the plague, investors are boldly taking action again. Chinese media apparently reported a breakthrough in the fight against the virus. The DAX is rising. Asian stock exchanges are posting gains. The evening before, Nasdaq 100 and Composite even set a new closing record.
Frankfurt Stock Exchange rises
The bulls on the stock exchange have been moving slowly but inexorably forward recently. The DAX put its pre-market losses to one side and was recently up 1.1 percent at 13,434 points.
Interestingly enough, the DAX recovered yesterday, ending the day at 13,282 points, exactly on the 50-day line. We know this from chart analysis: former supports act as resistance on the way back. Will this resistance break sustainably? You should definitely keep your direct market access open and keep an eye on our regular market updates.
The most important topic on Wednesday was once again the corona virus. Investors rewarded the feverish search for drugs positively. US futures, for example, rose by around 1 percent.
Hope regarding the Corona virus
While the number of deaths approached the 500 mark, investors now put their hopes on drugs against the corona virus. According to Reuters, Chinese media reported the breakthrough of a research team. The day before, Bloomberg had already reported that Thai scientists had expressed hopes for a drug cocktail. Now it was said that the Wuhan Institute of Virology would acquire a local patent for Remdesivir from Gilead Scienes. The “New Straits Times” reported that Chinese doctors were betting on combinations of HIV and influenza drugs.
Gains on the Asian stock exchanges
As a result, Chinese shares rose. The CSI-300 closed the morning with a gain of 1.1 percent at 3,829 points. In Tokyo, the Nikkei 225 closed the day with a gain of 1 percent at 23,320 points. After the Chinese central bank injected liquidity, the Japanese central bank also signalled alarm: Deputy Head Masazumi Wakatabe said that an easing of monetary policy was not imminent. However, his institution would not hesitate to take additional easing measures if the risks became very high. Wakatabe is considered a proponent of aggressive monetary policy.
Optimism in New York
The evening before, the bulls had been in charge in the USA. The Dow Jones Industrial rose 1.4 percent to 28,808 points. The S&P 500 gained 1.5 percent to 3,298 jobs. And for the Nasdaq 100 it went up 2.3 percent to 9,334 points. The index thus reached a record high, just like the composite. And now both high-tech indices have risen a price gap.
What the day brings
The appointment calendar is full to bursting on Wednesday, you will find the overview as always here: Market Mover
First of all, the ADP labour market report for January in the USA is due at 15.15.
At 14.30, the trade balance for December will follow.
Finally, the Markit PMI Services for January follows at 15.45.
At 16.00 the ISM Purchasing Managers’ Index Services for January is published.
And at 16.30 follows the Oil Report of the Ministry of Energy.
The Bernstein-Bank wishes successful trades!
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