23.08.2019 – Daily report. Cautious buying on the Frankfurt stock market: Investors are waiting for new signals for the monetary policy flooding in the USA. Although the Federal Reserve had caused confusion with its unclear statements in the Fed minutes published on Wednesday, many brokers are now back at the Jackson Hole meeting. If there are not some disappointed…
Slight gains in Frankfurt
Maybe it will be something with the new tide of cheap dollars. According to this motto, some market players positioned themselves and resorted to the German blue chips. By midday, the DAX had risen by 0.5 percent to around 11,800 points.
According to Bloomberg, an unnamed insider currently sees no reason for a fiscal stimulus, although the economy is likely to contract slightly in this quarter as well. Finance Minister Olaf Scholz (SPD) had raised exactly these hopes and the “Spiegel” had blown up the balloon. Let’s wait and see.
No matter whether you are active online in stock trading or trading CFDs: be on your guard, if the Fed disappoints the markets, then it’s off. It’s good that you can also earn money with CFD on the short side.
Waiting for Jackson Hole
At 4:00pm German time we know more. Then US Federal Reserve Chairman Jerome Powell will step up to the microphone in Wyoming and open the international meeting of central bankers. With the recent recession signal of the inverse yield curve, many investors are hoping for official statements on how and whether the Fed intends to counter the downturn. If US bonds with shorter maturities yield higher yields than Treasuries with longer maturities, then this was usually a reliable sign of a recession in the past. As a result, many brokers have already priced in one or two further rate cuts in the USA. You can imagine what will happen if Powell disappoints these hopes.
Asia wants tariff agreement
With this we turn to the other determining theme of these days. In Japan and China, prices rose after a moderately positive signal in the tariff dispute between China and the USA. The Chinese CSI-300 climbed 0.7 percent to 3,821 points. In Tokyo, the Nikkei 225 closed with a gain of 0.4 percent at 20,711 points. And that is the news behind it: Larry Kudlow, the economic advisor to US President Donald Trump, plans to continue direct talks with China. After all, they are still talking.
Wait and see in New York
Wall Street had been reticent the night before in the run-up to Jackson Hole. The Dow Jones Industrial climbed by a moderate 0.2 percent to 26,252 points. After all, it made up for its temporary minus. The S&P 500 crumbled by 0.1 percent to 2,923 points. The Nasdaq 100 fell by 0.3 percent to 7,707 points.
This is what the day brings
The view remains on the economic calendar. Apart from Jackson Hole, there are only a few market-moving events.
At 4:00 pm the figures on the sales of new houses in the USA in July will run through the tickers.
It will be interesting for traders in the energy market at 7:00pm when the Baker Hughes oil platform count is published.
The Bernstein Bank wishes successful trades!
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