10.07.2019 – Daily report. No progress on the Frankfurt stock market. The stock market is eagerly awaiting the appearance of Fed Chairman Jerome Powell in the US House of Representatives. Is he letting the air out of the bloated hopes of interest rates? The welfare and woe of Wall Street and global trade currently depend on this performance.
Tedious business in Frankfurt
It’s all so tedious on the floor. The DAX crumbled by 0.3 percent on Wednesday afternoon. By the way, the German leading index closed a gap in the price chart the day before, we had already pointed out this possibility days ago.
No wonder that things didn’t move ahead recently: At 4 pm German time is the most important date of the week. US Federal Reserve Chairman Jerome Powell delivers his semi-annual report on the economic situation to the US Congress in Washington. Most recently, a strong labour market report had dampened hopes of an interest rate cut. Should Powell now disappoint Wall Street’s hope for fresh, cheap money, then you can expect – depending on Powell’s choice of words – a strong price slide. But as a CFD trader you can also earn good money when prices fall, unlike investors in online stock trading.
Standstill in Asia
In view of the hoped-for news from the Fed, a factlet in the trade dispute between China and the USA receded into the background. According to CNBC, the Chinese Ministry of Commerce confirmed that on Tuesday there had been a telephone conversation between Chinese Deputy Prime Minister Liu He and Trade Minister Zhong Shan on the one hand and US Representative Robert Lighthizer and Trade Secretary Steven Mnuchin on the other. After all – they are talking to each other again.
The fact that the Chinese can make good use of a deal is proven by the producer prices in China. They stagnated surprisingly in June. This development raised concerns about a slowdown in production.
Accordingly, the Chinese CSI-300 closed 0.2 percent lower at 3,786 points. The Nikkei 225 also slipped by 0.2 percent to 21,533 points.
A little courage in New York
Investors in New York had shown a little more courage the evening before. The leading US index, the Dow Jones, fell by 0.1 percent to 26,783 points on Tuesday. But the S&P 500 closed 0.1 percent higher at around 2,980 points. The Nasdaq 100 even advanced by 0.5 percent to 7,827 points.
A storm is on its way
If we look at the arrest of the paedophile billionaire Jeffrey Epstein, it could be a super tornado, messing up the stock market and sweeping away half of Washington. But probably not US President Donald Trump – even though the left-wing German and American media are currently trying to portray Trump as Epstein’s “friend”. Trump had praised Epstein as a buddy in 2002 and met him again and again at various parties of the trendy series. But Trump threw Epstein out of his golf club in Mar-e-Lago when he threw himself at a young girl. Trump was also the only one who, according to Florida lawyer Bradley Edwards, supported the reopening of dozens of rape cases in 2018.
No, it was apparently the Democrats who, after everything that is brought to the surface by small blogs outside the mainstream, held the protective hand over Epstein. And not only Bill Clinton, who is said to have flown 26 times with Epstein’s Orgien-Jet. If these points prove true, then the Democrats would probably be destroyed in the next presidential election.
This is what the day brings
Last but not least, the view of the well-filled appointment calendar remains.
At 04:00pm the stocks in the US wholesale are announced.
This is followed at 04:30pm by the weekly oil report. On the evening before the interest federation American Petroleum Institute (API) had already reported for the past week a decrease of the oil reserves around 8,13 million barrels.
At 08:00pm finally the minutes of the Fed meeting are published.
The Bernstein Bank wishes successful trades!
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