10.04.2019 – Daily report. Slight plus for the DAX on early Super Wednesday. The bullish investors hope for a new boost from a bouquet full of news. Because with the European Central Bank (ECB), the Federal Reserve, US economic data and the EU summit on Brexit, the table for active investors is richly set. CFD traders should pay particular attention to their trading platform today.
Softeners for the Brexit
Initially, the focus will be on the British pound in the foreign exchange market. For the time being, a hard, possibly chaotic farewell of the British to the European Union seems to have been averted. The European heads of state and government probably want to give London more time for an orderly EU exit at their special summit today, Wednesday. This is what emerged from the draft final declaration. But that has its price: The United Kingdom is to take part in the European elections at the end of May. We are curious to see how the hardliners among the Brexiteers will react. It was unclear exactly when concrete news would arrive.
Everything looks to the ECB
From 13.45 it will be exciting in terms of the European Central Bank. It will then report the outcome of its Council meeting. Hardly anyone expects a change in the key interest rate of 0 percent. And at 2.30 p.m. Mario Draghi will explain to the press whether the commercial banks can expect new relief. Perhaps the highest currency guardian even indicates a resumption of bond purchases. Every surprise should cause some excitement in the euro.
Italy and Spain are particularly in the focus of the ECB because the banks there are weakening. Yesterday Italy already delivered an affront to the EU Commission: The government has significantly lowered its growth forecast for this year. For 2019 it expects economic growth of only 0.2 percent instead of 1.0 percent. At the same time, Rome raised its deficit forecast. The expected new debt was raised from 2.04 percent of GDP to 2.4 percent.
Fed and fresh US economic data
So the music plays on dollars and US futures. At 14.30 consumer prices arrive and finally real incomes, both for March.
At 4.30 p.m., the events change to the energy market: There, the state Energy Information Administration (EIA) will report the weekly stock data of the crude oil stocks. Today, Wednesday, OPEC should also publish its monthly report.
The evening will also bring plenty of reading material: At 8 p.m. the Federal Reserve will publish its minutes of the Open Market Committee meeting of 19/20 March.
The wrong world in China
Asia had previously set mixed targets for Frankfurt trade. The Nikkei 225 closed in Tokyo 0.5 percent lower at 21,688 points. In contrast, the Mainland index CSI 300 in China retired with a plus of 0.3 percent at 4,086 points. Here investors quickly reinterpreted negative news into positive news: The China Passenger Car Association (PCA) reported a drop in sales for the tenth consecutive month. Previously, the car market had grown for twenty years. The stock market is now hoping for incentives to buy from the state and a gigantic catch-up effect.
Disappointment in New York
In the USA, the bears were in charge on Tuesday. The Dow Jones Industrial lost 0.7 percent to 26,151 points. The S&P 500 lost 0.6 percent to 2878 points. And the Nasdaq 100 fell by 0.4 percent to 7568 points. The International Monetary Fund (IMF) was the spoiler: It lowered its estimates for global economic growth in 2019 – for the third time in just a few months. For 2019, the organization only expects growth of 3.3 per cent. This is 0.2 percentage points higher than in January.
We are curious to see how Wall Street will react to the incoming economic data and wish you successful day trading!
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