Powerless course for Christmas

By 19/12/2019News
Trading chart

19.12.2019 – Daily Report. The brokers don’t want any more. Two US indices tripped once again to a new high. But the investors in Frankfurt have apparently ticked off the year. Which is no wonder after a great performance. The British pound could be exciting again today. And some interesting economic data is also being reported in the USA.

Prices in Frankfurt are crumbling

Hardly any movement on the trading platform: Germany’s leading index fell by 0.2 percent to 13,194 points on Thursday morning. The DAX had already fallen by 0.9 percent the day before. Nevertheless, the stock market year is likely to be the most successful since 2012 – the indicator has risen by around a quarter since the beginning of January.

Asia without vigor

Shareholders in Japan also showed little interest in acquisitions. The Nikkei lost 0.3 percent to 23,865 points. The CSI 300 index with the 300 most important red chips lost 0.1 percent to 4,027 positions.

New York drags ahead

On Wall Street, the S&P 500 once again set a new course record. In the end, however, the index fell by 0.04 percent to 3,191 points. The Nasdaq Composite, on the other hand, set a final record with a minimal gain of 4.38 points or less than 0.05 percent at 8,828 points. The Dow Jones Industrial closed 0.1 percent lower at 28,239 points.
Impeachment was not an issue. A total of five Democrats voted against, abstained or did not vote; two Republicans did not vote – otherwise they all voted against the impeachment. So Donald Trump has support in his own party and can look forward to a final verdict in the Senate rather calmly.

Thus the Impeachment ran

Yesterday’s debate provided some interesting facts that were little discussed in this country. Just a few minutes after its inauguration in January 2017, for example, the Washington Post, the mouthpiece of the Democrats, had just uploaded an article entitled “The Campaign to Impeach President Trump has begun”. According to the article, some groups have worked from the first moment on towards an impeachment.
In fact, the radical wing of the Democrats has tried impeachment THREE times before. Dozens of MPs wanted to get rid of Trump because, among other things, he fired FBI chief James Comey; because he had verbally roughened up the “squad” – a group of women politicians; or because the president had called on American football players to stop at the national anthem. Until yesterday, the moderates among the Democrats had still slowed down the Socialists.
All in all, it looks like it doesn’t really matter what Trump does – the Democrats never accepted the result of the 2016 presidential election. According to this, a good 200 parliamentarians from the House would now presume to cancel the people’s verdict in the presidential election. This could pay off in view of the bull market on the stock exchange, the booming US economy and low unemployment.

Setting the course for the pound

Sterling remained almost unchanged against the euro at 1.1758. Today, the traditional Queen’s Speech presents the government program of the Tories. It is likely that Johnson will have the law on the withdrawal from the European Union presented to the MEPs before Christmas.

From 13.00 o’clock it becomes exciting with the bank of England – an interest rate change is considered up-to-date as impossible. But traders in the foreign exchange market are hoping for economic prospects after the British parliamentary elections and for Brexit. There could also be indications of the succession of central bank chairman Mark Carney, who will step down on 31 January 2020. According to the BBC, his deputy Minouche Shafik is the government’s favourite. The official announcement of his successor is scheduled for Friday.

This is what the day brings

The US current account will be reported at 2:30pm for the third quarter.
At the same time, the Philly Fed index will be published.
And also the first weekly applications for unemployment benefits.
At 4:00pm the early indicators follow for November.
At the same time, sales of second-hand real estate are reported.
As always, you can find the calendar of events here: Market Mover
The Bernstein Bank wishes you successful trades!

Important Notes on This Publication:

The content of this publication is for general information purposes only. In this context, it is neither an individual investment recommendation or advice nor an offer to purchase or sell securities or other financial products. The content in question and all the information contained therein do not in any way replace individual investor- or investment-oriented advice. No reliable forecast or indication for the future is possible with respect to any presentation or information on the present or past performance of the relevant underlying assets. All information and data presented in this publication are based on reliable sources. However, Bernstein Bank does not guarantee that the information and data contained in this publication is up-to-date, correct and complete. Securities traded on the financial markets are subject to price fluctuations. A contract for difference (CFD) is also a financial instrument with leverage effect. Against this backdrop, CFD trading involves a high risk up to the point of total loss and may not be suitable for all investors. Therefore, make sure that you have fully understood all the correlating risks. If necessary, ask for independent advice.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading CFDs with this provider.
You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.