Good mood in Frankfurt

By 07/06/2019News
Boerse chart


07.06.2019 – Daily report. Everything is so rosy on the German stock market: pushed by a firm Wall Street, the DAX remained in the profit zone on Friday morning. The leading index defied negative data from the German economy. Now a possible agreement between Mexico and the USA is supporting prices. In addition, US interest rate fantasies continue to have an effect.

DAX defies poor economic data

Buying mood among German shareholders – the DAX has recently remained above the 12,000 mark, posting an increase of 0.8 percent.
Not even poor economic data from Germany clouded the positive mood: German exports in April fell by 3.7 percent compared to the previous month, according to the Federal Statistical Office. This is the sharpest decline since August 2015. Imports shrank by 1.3 percent. Companies also reduced their production in April as sharply as they last did in August 2015, as the Federal Ministry of Economics added. As always, you can find all economic data here:Market Mover

Profits in Asia

Investors also took action in Asia. The Chinese stock exchanges remained closed due to the dragon boat festival. But the Chinese central bank stressed that it could support the economy with monetary policy interventions if necessary. The Nikkei 225 in Tokyo took its leave into the weekend with a plus of 0.5 percent at 20,885 points.
New York closes in positive territory
Prices on Wall Street also climbed on Thursday. The Dow Jones index closed with a gain of 0.7 percent at 25,723 points. The S&P 500 rose by 0.6 percent to 2,843 points. And the Nasdaq Composite rose by 0.5 percent to 7,615 points.

Mexico now supports prices

Mexico was in a good mood. Washington is apparently considering postponing the imposition of customs duties in the trade and border dispute with Mexico. Mexico wants more time for negotiations, the news agency Bloomberg reported, citing insiders. Actually, the special duties are supposed to take effect on Monday. But now Mexico wants to move 6,000 national guardsmen to the border in order to contain the influx of illegal immigrants into the USA. In addition, Mexico froze the bank accounts of 26 human traffickers.
By the way, politics could offer CFD traders interesting opportunities in the Mexican peso. The secondary war in Mexico is also proof that the clear edge of the USA in politics and the swinging of the punitive tariff whip to enforce national interests can work. Many investors, of course, are making a connection to China.

This is what the day brings

The view remains on a quite tidy appointment calendar. At 2.30 p.m. the focus is on the official US labour market report. Will the Federal Reserve intervene with an interest rate cut in the event of bad job data or not? The reactions of the market will provide information on this – so keep an eye on the regular market updates and keep direct market access open.
Bernstein-Bank wishes you successful trades and a sunny weekend!

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