30.04.2019 – Special report. Once again, the DAX hovered just below the price peak at the start of trading. Wall Street had set closing records for Nasdaq Composite and S&P 500 the previous day. However, many brokers held back because of important US economic data. Since there are still around 160 companies outstanding in the S&P, which are reporting their balance sheets this week. On top of this, there is still the Federal Reserve’s report tomorrow which always has everyone watching.
Balance sheet season in full swing
We already know the pattern: The morning in Frankfurt is marked by a small backset. The DAX, for example, recently recorded a minimal minus, but over 12,300 points. The day before, Germany’s leading index had only started at 12,366 points, its highest level since the end of September, before it crumbled. After all, the DAX was close to its high for the year on Tuesday.
Investors had to process a lot of business results. According to the interim report, the Lufthansa share trundled into the lower DAX regions: In the first quarter, the airline felt the effects of overcapacity and massive price pressure, and the loss widened. Beiersdorf was at the top of the DAX, with sales better than expected. Deutsche Börse held its ground slightly higher, and earnings in the first quarter rose surprisingly significantly.
Skepticism about China’s industry
Mixed data had arrived from China in the morning. On the one hand, the state purchasing managers’ index for industry slipped below forecasts. The forecasts for service providers were also slightly undercut. But on the other hand, the industry index of the magazine “Caixin” was better than expected. However, the private indicator slipped from 50.8 points in the previous month to 50.2. Industrial activity is therefore still expansionary, albeit weaker than before. All the important dates and data figures can be found here: Market Mover
Investors in China probably saw the data as an argument for increased state intervention, with the CSI 300 gaining 0.3 percent to 3,913 points. The Tokyo Stock Exchange will once again be closed today because of a public holiday.
Records on Wall Street
On Monday evening, new records had fallen rather inconspicuously on Wall Street. The financial professionals of Marketwatch judged: The S&P 500 finally rose by 0.1 percent to 2,943 points, setting the record on September 21st intraday, a positive signal for chartists. The Nasdaq Composite rose by 0.2 percent to 8,162 positions. According to Marketwatch, both the S&P 500 and the Nasdaq Composite achieved record highs twice in a row, the first time since the four-day route ended on August 29, 2018. Let’s remember: The rally lost some of its strength quite soon after, but it was a hard-downhill race until Christmas. The rest of the balance season will show how things are going this time.
The Dow Jones Industrial Average closed almost unchanged at 26,554 positions on Monday. There were also mixed data in the USA: US consumers had indeed increased their spending in March. Inflation was moderate. However, household incomes gave households food for thought.
The Google mother Alphabet had a damper on the bulls after the close of trading. Growth is flattening out, and there was also a sharp drop in profits in the first quarter.
This is what the day brings
The calendar on Tuesday is full to bursting with economic data: German consumer prices are due for April at 02:00 p.m.
The index for employment costs in the first quarter from the USA is expected to arrive at 02:30p.m German time.
The Case-Shiller-Index will follow at 03:00 p.m. and will provide insight into the price development on the US real estate market.
Finally, at 04:00 o’clock this evening the pending house sales are lining up in March and above all the consumer confidence for April.
During the balance sheet season, investors will be looking at General Motors at 01:30 pm and McDonald’s at 02:00 pm. At 10:30 tonight the Apple numbers set an important final chord.
At the same time the crude oil inventory data of the private American Petroleum Institute (API) are to run over the screens.
So once again the day for CFD traders is richly filled – the Bernstein Bank wishes you successful trades!
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