27/02/2019 – 12:00: Waiting is Trump, pardon: The trump, on the Frankfurt Stock Exchange: The DAX presented itself in early Wednesday trading with slight losses below the 11,500 mark. Without new, positive news in the Trade War between China and the USA, the momentum was lacking recently. Especially since there was disappointment in the quarterly figures. Meanwhile, traders are looking at the oil market and the British pound.
Beiersdorf Disappointed – Bayer Pleased
On Tuesday, the DAX closed at a new high for the year at 11,540 points after slight initial difficulties – and this was the sixth consecutive day of gains. On Wednesday, however, Beiersdorf was disappointed – the share fell by almost 10 percent in early trading: The consumer goods group expects slightly lower earnings growth this year than in 2018. The Nivea manufacturer also expects a slower pace of sales growth.
Bayer, on the other hand, supported the leading index with a profit of over 3 percent: Ebitda rose by almost 16 percent to around EUR 2.1 billion in the fourth quarter thanks to the acquisition of Monsanto. However, the bottom line was a loss of a good EUR 3.9 billion (prior-year period: plus EUR 148 million). In the final quarter, sales climbed by almost 29 percent to around EUR 11.1 billion.
No Clear Direction in New York
The New York Stock Exchange did not give the German stock market any boost on Wednesday. The Dow Jones bid farewell to the closing bell with a slight minus of 0.1 percent at 26,058 points. The S&P 500 also fell by around 0.1 percent to 2794 positions. Only the Nasdaq 100 worked its way up by 0.1 percent to 7123 points.
It was heard from the floor that Washington and Beijing would finally have to deliver after all the advance praise in the Trade War. But since US President Donald Trump is currently seeking to join forces with North Korea in Vietnam, little news in the Chinese-American dispute is to be expected in the near future. In addition, U.S. economic data was only half bearish on Tuesday. The US housing market continues to weaken, as the unexpectedly sharp decline in construction started showing in December. However, consumer sentiment brightened surprisingly in February.
The Pound is Rising
The traders also looked at the British pound, which had recently made up ground due to a possible Brexit shift. Prime Minister Theresa May paved the way for a postponement of the EU withdrawal if the treaty does not find a majority. This would prevent chaos on 29 March, but the hanging game would continue.
Fed on hold
For the dollar, Fed Chairman Jerome Powell initially provided no impetus. At his half-yearly hearing before the US Senate Banking Committee, he was hesitant. The reasons were weaker economic data and increased uncertainty. In other words, no interest rate hikes are planned for the time being, but they are possible. In view of the cooling global economy, most analysts currently see this as rather unlikely.
And what else is happening on Wednesday? First, Fed Chairman Powell will address Congress once again. At 4 p.m. German time, the EU Business and Consumer Surveys are scheduled, which should have an influence on shares from the EuroStoxx 50 and the Euro.
OPEC Quite Relaxed
Traders in the crude oil market look from 16.30 German time on at the change of the US storage quantity with crude oil. Meanwhile, OPEC reacted to a Twitter demand from Donald Trump not to apply the production brake too much. Saudi Energy Minister Khalid al-Falih said in an interview with CNBC that OPEC would remain cautious. The 25 states are taking a cautious approach and are particularly interested in the stability of the market. In December of last year, the cartel states and associated countries had agreed to reduce production.
Air War in Kashmir
Otherwise, the situation in Kashmir worsened: Pakistan reported on Wednesday that two Indian fighter jets had been destroyed. The day before, Indian planes had attacked Pakistani territory for the first time since 1971 to attack a terrorist training camp. Pakistani jets are also said to have carried out air strikes in Indian Kashmir. The situation remains confusing – and could quickly escalate.
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