27.09.2019 – Daily report. New day, old game: The back and forth in the customs dispute between China and the USA slows down and lifts the mood in global trade. In addition, the Damocles sword of ouster is hovering a little closer above the head of US President Donald Trump following new, albeit expectable, accusations. Nevertheless, the DAX is rising – which is due not only to interesting news about Trump/Ukraine but also to the weak euro.
Slight increase on the German stock exchange
Restrained momentum on the Frankfurt floor before the weekend: the DAX climbed by 0.5 percent to 12,353 points. The German mainstream media were shocked that, according to an anonymous whistleblower, several leading US government officials tried to prevent access to the wording after the telephone conversation between Trump and Ukrainian President Volodymyr Selenskyj at the end of July. Moreover, not everything has been published – it is clear that the Democrats are playing this card in view of the dry transcript. What is true: The matter paralyzes the stock market, which hates nothing more than uncertainty.
Predominantly sceptical overseas
There was also speculation that the Huawei sanctions would be reintroduced. Fortunately for the cops, there were also signs of relaxation from China – Chinese Foreign Minister Wang Yi was optimistic and confirmed that the USA was showing good will. The trade agreement between the USA and Japan also supported the mood somewhat. The Chinese blue chips saw a moderate rise, with the CSI-300 gaining 0.2 percent to 3,850 points. The Nikkei 225 closed with a minus of 0.8 percent at 21,879 points, but this was also due to dividend distributions.
In the USA, the Dow Jones Industrial fell by 0.3 percent to 26,891 points on Thursday due to the new Ukrainian accusations. The S&P 500 fell by 0.2 percent to 2,978 points. The Nasdaq 100 fell by 0.4 percent to 7,772 points.
Impeach yourself
Let’s stick to the Causa Impeachment. The Washington Post was just fair enough to give the floor to conservative commentator Marc Thiessen. And he brought this interesting Document from the US Senate back to light.
Accordingly, in May 2018 the three democratic senators Robert Menendez (D-NJ), Dick Durbin (D-IL) and Patrick Leahy (D-VT) politely but unequivocally urged the Ukrainian Attorney General Yuri Lutsenko to support investigations against his own president. At that time it was about the claim that Russia had supported Trump in the 2016 election campaign, which had meanwhile been refuted by the Mueller Report. By the way, Lutsenko followed Viktor Shokin, who according to a report in “The Hill” had been dismissed under pressure from Joe Biden – US Vice President Joe Biden threatened to withhold $1 billion in loans if Shokin did not leave. Official version: Shokin has kidnapped corruption investigations.
Shokin himself told ABC that he was also responsible for investigations against the Burisma Holdings gas company and was therefore dismissed. In Burisma, by the way, son Hunter Biden earned 50,000 dollars a month as a member of the board of directors – although he had previously been released from the US Army reserve for cocaine abuse and had no experience in the gas business or with Ukraine. There are strange coincidences…
Hypocrisy and suppressed news
This raises the question: In view of these backgrounds, how do the democrats intend to justify to their voters that they want to overthrow Trump and de facto paralyse government work with the impeachment hearings? So maybe it doesn’t look as bad for Trump as the media caste of Pharisees likes to portray it. Or have you already read or seen on TV something of the letter quoted above in this country? Let’s wait and see what else comes to light. It is already clear now: If you trade CFDs or shares online, it is important for you that you always analyse the dissenting vote. You can find them here on our website, for example. Only then can you position yourself correctly with your trades.
Euro and Pound in Focus
A look at the currency market remains: Even the weak euro was a reason for the strength of the DAX with its many export-oriented companies. The euro just fell to 1.0905 US dollars at times – the lowest level since May 2017. The reasons: A small run on US Treasuries was recorded due to the Ukraine affair. On the other hand, investors are hoping for a glut of money in Europe. According to the CNBC, something is also happening about the pound: Michael Saunders, chief economist at Citigroup and external advisor to the Bank of England, told managers in Northern Ireland that the British central bank could lower interest rates because of the Brexit uncertainty. Which weighed a little on the pound.
This is what the day brings
The calendar brings some interesting events, you can find the overview as always here: Market Mover
In the USA it gets interesting at 2:30 pm: Then personal income and consumption are due for August.
In addition, data on new orders for durable goods will arrive simultaneously in August.
The Bernstein Bank wishes you successful trades and a relaxing weekend!
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.