Stock market players await ECB

By 25/07/2019News
Chart Stock Graph


25.07.2019 – Daily report. Interest gladness or interest frustration? The stock market expects the European Central Bank to lower interest rates. And a significant one at that. And soon, if not immediately. The new records of S&P 500 and Nasdaq 100 are also initially giving a boost. But the Ifo index is dampening the anticipation.

Frankfurt relies on the ECB

The theme of the day on the Frankfurt floor will be the European Central Bank. The DAX initially pulled away to 12,600 points, but then fell again and finally moved sideways again.
Investors hope that the currency guardians will flood the market with cheap money. Not all analysts assume that the deposit rate will be lowered today. A negative interest rate would be a penalty fee for money that commercial banks park at the ECB. But many brokers now estimate the probability that the ECB will lower the deposit rate at more than 50 percent. The scope for disappointment is therefore great.
At any rate, the Ifo Business Climate Index did not provide a clear indication of the ECB’s share price. The sentiment indicator fell slightly in July from 101.8 points to 101.7 points. However, the decline was not as severe as many experts had feared. All economic data can be found here: Market Mover
The Ifo index is therefore worse, but perhaps not bad enough for the ECB. So let’s wait and see how and whether the central bankers will set the euro, bonds and equities in motion. From 1.45 p.m. we know more.

Asia ignores politics

Meanwhile, Asian stock exchange traders looked to Wall Street, where S&P 500 and Nasdaq 100 had closed at an all-time high. In Tokyo, the Nikkei 225 bid farewell 0.2 percent firmer at 21,757 positions. The CSI, which includes 300 blue chips from mainland China, rose 0.8 percent to 3,851 points. Even politics did not stop the buyers: North Korea tested two short-range missiles. In addition, a spokeswoman for the Chinese Ministry of Defence indicated that Beijing could send the People’s Liberation Army to Hong Kong to get the riots under control. In addition, the USA sent a warship to Taiwan.

3000 and 8000 – record hunt in New York

Wall Street had been firmly in the hands of the cops on Wednesday. The White House had confirmed media reports that Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer will meet with their Chinese counterparts next week. So here’s to a new one in the customs dispute with China.
Both S&P 500 and Nasdaq 100 set new records. And magic brands overcame each other: 3,000 on the one hand and 8,000 on the other. The market-wide S&P 500 gained 0.5 percent to 3,020 points. The Nasdaq 100 passed the 8,000 point mark for the first time – it closed with a plus of 0.7 percent at 8,011 points. The Dow Jones lagged due to weak figures and the resulting price losses of Boeing and Caterpillar. At the closing bell, the Dow fell by 0.3 percent to 27,270 points.

He is serious

The pound sterling is likely to remain exciting until 31 October. The new Prime Minister, Boris Johnson, is apparently tackling the Brexit issue resolutely. At least he will take action in the new cabinet: He has mainly filled his new government team with supporters of Brexit. British media described the castling as a “bloodbath”. For example, his rival Jeremy Hunt, the Tory party leader, also fell victim to the new occupation.

This is what the day brings

In addition to the press conference of the European Central Bank at 2.30 p.m., two US data in particular should dominate the day.
At 2.30 p.m. German time, for example, orders for durable goods will be received in June.
At the same time, the first weekly applications for unemployment benefits will be reported.
The Bernstein Bank wishes successful trades!

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