24.07.2019 – Daily report. The DAX is taking a break for the time being. After the strong plus on Tuesday, investors wait, cool down and sound out the situation. There are enough interesting topics in the near future: the ECB interest rate decision, Brexit, the China-USA customs dispute and the reporting season can have a strong impact on prices.
Stock market pause for breath
Everything so quiet on the trading platform, hardly a sign of life in the real-time prices to match the heat. But investors were granted a break; the day before, the DAX had had the best trading day in about four weeks from the bulls’ point of view. On Wednesday noon, however, the leading index was undecidedly floating with a meagre plus of 0.1 percent. After all, the indicator thus moved within reach of the 12,500 mark. You can only enjoy a lethargy like this if you trade daily updated CFDs. Then you can take even the smallest movements with you thanks to the lever. An engagement in online stock trading, on the other hand, requires patience. Meanwhile, Deutsche Bank once again caused a sensation with a larger than expected minus. Daimler also reported weak figures. In the foreign exchange market, investors kept an eye on the pound following the appointment of Boris Johnson as the new British Prime Minister.
Waiting for the ECB
It is hard to believe that the situation on the Frankfurt floor will change significantly before the European Central Bank makes its interest rate decision tomorrow. Investors are waiting for a clear statement from ECB boss Mario Draghi as to whether he is already announcing a resumption of bond purchases or at least has the prospect of doing so. If not, this should drive some optimists out of the market.
They want to negotiate again
Hopes of a timely resolution to the US-China customs dispute had boosted prices in Asia this morning. In Tokyo, the Nikkei 225 closed 0.4 percent higher at 21,710 points. In China, the CSI-300 bid farewell with a plus of 0.8 percent at 3,820 points. An American trade delegation wants to travel to China sometime in the period between Friday – then the six-week summer break of Congress begins in the tropically heated Washington – and August 1. CNBC reported this with reference to insiders. The state of affairs: The USA had offered to loosen the sanctions against Huawei if China increasingly buys agricultural products in America.
New York misses the record
Good quarterly figures – for example from Coca Cola and United Technologies – as well as the budding hope in the US trade dispute with China had pushed Wall Street on the previous evening. In addition, the stock exchange members applauded the averted shutdown after the US government and Congress representatives had agreed on a new budget package. The Dow Jones Industrial advanced by 0.7 percent to 27,349 positions at the closing bell. It thus made contact again with the all-time high of the previous week – at its peak of 27,398 points, only around 30 points were missing from the new record. The other indices did not reach a new high either: the S&P 500 gained 0.7 percent at 3,005 points. The technology-oriented Nasdaq 100 rose by 0.6 percent to 7,955 points.
Surprise on the oil market
The evening before, the American Petroleum Institute (API) had caused a sensation. API reported a drop in US crude oil stocks last week of almost eleven million barrels. This minus is unusually strong despite vacation season and travel time. We are curious to see how the weekly oil report will turn out today at 4.30 pm.
That brings the day
In addition, the diary is rather thinly filled. The American purchasing managers’ index at 15:45 becomes interesting.
Also the US home sales in June at 16.00 hrs.
In terms of quarterly figures, Wall Street will be pre-market mainly Boeing, Caterpillar and UPS.
Post-IPO figures include Facebook and Ford.
The Bernstein Bank wishes successful trades!
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