01.10.2019 – Daily Report. In early Tuesday trading, the DAX rose, then prices crumbled. No wonder before the holiday on Thursday there is a lack of vigour, as many brokers are on holiday. After all, there were hardly any disturbance maneuvers on the news front.
The DAX crumbles
Everything is quite calm at the Frankfurt Stock Exchange. The DAX recently held its ground at 12,418 points, down 0.1 percent. Two days before German Unification Day, the trading volume of German equities was only at a low level. The US futures were trading in positive territory.
Nikkei defies Tankan
In Tokyo, the Nikkei closed 0.6 percent higher at 21,885 points. The customs dispute between China and the USA has meanwhile clouded the mood in Japanese industry due to falling export opportunities to the People’s Republic: the Tankan Report signalled a six-year low in the mood in companies. After all, the assessment is not as bad as many analysts had expected. As always, you can find all the data here: Market Mover
Bond Surprise in Japan
Meanwhile, Japan showed what happens in the bond market when the central bank and large funds hold back on purchases. Futures turned south after the ten-year Japanese government bond auction was worse than it had been in three years. Yields rose across all maturities. Earlier, the Bank of Japan had declared that it was buying potentially fewer domestic bonds in October. The Japanese Government Pension Investment Fund also wants to buy more foreign government bonds in the future. And that is after all the largest pension fund in the world.
Investors look to Hong Kong
The Chinese stock exchanges remained closed due to the national holiday. Investors in Asia watched the situation in Hong Kong intently: demonstrations in the former British crown colony are expected again for the celebrations marking the 70th anniversary of the People’s Republic of China. This is already the 18th week in a row with demonstrations. US President Donald Trump warned China weeks ago of a violent escalation and linked the crisis with the customs dispute.
Up in New York
On the evening before, the US stock exchange had closed in positive territory. And this despite the fact that the mood of companies in the Chicago region had deteriorated considerably. The Dow Jones Industrial closed 0.4 percent higher at 26,917 points. In the month of September, the Dow thus achieved a profit of just under 2 per cent; in the third quarter, the plus was 1.2 per cent. The S&P 500 closed Monday 0.5 percent higher at 2,977 positions. And the Nasdaq 100 climbed 0.9 percent to 7,750 points.
What remains is a brief chart analysis: the Dow has been in a sideways trend between 26,700 and 27,100 points for just over a week now. This makes the index an ideal platform for traders. Because if you trade CFD, then the ups and downs in a relatively narrow trading range with the right positioning will certainly bring a nice return, because even with a small investment you can earn good money with leverage. If you trade stocks online, the sideways movement can be frustrating.
This is what the day brings
Tuesday has some interesting dates in store.
First of all, the Markit Purchasing Managers’ Index for the U.S. is scheduled for September at 3:45pm.
Shortly thereafter at 4pm the ISM Purchasing Managers Index Industry will follow in September.
At the same time, US construction spending for August will be ticked off.
And at 6:30pm ECB President Mario Draghi steps in front of the microphone in Athens.
Last but not least, the weekly US crude oil inventory data from the private American Petroleum Institute will be reported at 10:30pm.
The Bernstein Bank wishes you successful trades!
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