27.11.2019 – Daily Report. Wall Street’s holding up at a record high. And this time, the stock markets in Frankfurt are following in the direction of an annual high. For in the customs dispute between China and the USA, an agreement is now definitely imminent. A familiar pattern is also being repeated for the Turkish lira. Which should worry the bulls extremely – and could be food for the bears.
The DAX gains
Germany’s leading index recently rose by 0.6 percent to 13,311 points. Meanwhile, the MDAX reached a new high of 26,632 points. Most recently, the index of mid-cap stocks held up 0.2 percent at 27,603 points. In view of the abundance of US economic data due before Thanksgiving, the development was astonishing. However, brokers did not want to find themselves in a sideways movement if the price rocket suddenly ignited.
Customs optimism again and again
Previously, US President Donald Trump had once again lifted the mood of the stock market in global trading. He noted that the United States was “in the final throes of a very important agreement.” And he continued: “The talks went very well”. Previously, the government in Beijing had declared that it had reached a consensus with the United States on relevant issues. In fact, it’s time for the Chinese, because the Economic Work Conference will take place in the second week of December – at this closed event, the leadership will set the course for the economy in the coming twelve months.
Mixed picture in Asia
Nevertheless, the Chinese CSI-300 fell by 0.4 percent to 3,876 points. The reason for this is a sharp drop in profits in Chinese industry in October: profits slipped by 9.9 percent year-on-year, after having already fallen by 5.3 percent in September, according to the National Bureau of Statistics. In Hong Kong, the Hang Seng remained up by 0.2 percent to 26,954 points. The Nikkei in Tokyo gained 0.3 per cent to 23,438 points. The day before, the index had reached a new annual high of 23,608 points.
New York wants to continue upwards
The evening before, hopes for a solution to the tariff conflict had clearly lifted the Dow Jones above the 28,000 mark – in the course of which the index had once again reached a new record high of 28,146. At the closing bell, the leading index rose by 0.2 percent to 28,122 points, the 14th record high in a short time. The S&P 500 also gained 0.2 percent to 3,141 points and the Nasdaq 100 advanced by 0.2 percent to 8,386 points.
And that brings us to an interesting event in the Turkish Lira. Once again President Recep Tayyip Erdogan commented on the motto. On Tuesday he called on the Turks to part with their dollars and in an act of patriotism exchange them for the domestic lira – which would no longer lose value, he assured the parliament. For some assets, a chart analysis is no longer helpful. But a look back – apart from the fact that USDTRY is forming a bullish flag. The grandiose blog ZeroHedge has kindly listed what happened at previous such prompts.
That’s what the day brings
If you trade CFDs in dollars, US stock exchanges, DAX or US Treasuries, then today will be an interesting day. The calendar is full to bursting, you can find the overview here as always: Market Mover
First the American GDP enters for Q3 at 2:30pm as a 2nd publication.
At the same time brokers are pleased about private consumption in Q3, also 2nd release.
At the same time the weekly first applications for unemployment assistance are reported.
After a small break at 4:00pm the private incomes and expenditures follow for October.
Ditto the pending house sales in the same month.
At 4:30pm the weekly oil report for WTI will be published.
And last but not least, you should analyse the Beige Book from 8:00pm onwards.
The Bernstein Bank wishes you successful trades!
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