18.07.2019 – Daily report. Small depression on the Frankfurt stock market: The DAX goes into reverse on Thursday at noon. Some quarterly figures do not appeal to the stock market. There were disappointments both in the USA and in Germany.
Bad mood in Frankfurt
What waves, might fall: According to this quote freely attributed to Friedrich Nietzsche, brokers on the Frankfurt floor will behave on Thursday. The leading German index has slipped because of several bad news items. Most recently, the DAX fell by 0.8 percent to 12,242 points. The mood was initially depressed by the post-trading minus of the IBM share and the collapse of the Netfllix stocks. The streaming service reported the first decline in US customer numbers in almost a decade.
Heidelberger Druck was responsible for sales pressure. The Kurpfalz-based group is experiencing an increasing reluctance to invest and a headwind for sales. SAP was able to speak from its neighborhood with a few meagre figures. Severance payments and takeover costs reduced the software group’s profits in the second quarter. Accordingly, SAP took its place at the end of the DAX. Meanwhile, new car registrations across Europe fell by 7.8 percent year-on-year in June.
Losses in Asia
In Asia, the seventh consecutive minus in Japanese exports caused headaches. The Nikkei lost 2 percent to 21,046 jobs. Needless to say, the radio silence in the trade dispute between China and the USA caused nervousness. The CSI-300 dropped about one percent to 3,768 points.
Skepticism in New York
The New York Stock Exchange had been firmly in the hands of the bears the night before. The Dow Jones lost 0.4 percent to 27,220 points. The S&P 500 fell by 0.7 percent to 2,984 positions. And the Nasdaq 100 fell 0.5 percent to 7,889 points. Economic data caused scepticism: the US housing market had developed worse than expected in June. However, the Fed explained in its Beige Book that the business outlook remained “generally positive”. So there is no reason for a rate cut? Let’s wait and see.
Boris weighs on the Pound
There remains a glimpse of the British pound. The currency has weakened recently because the presumed new prime minister, Boris Johnsonn, wants to push through Brexit with or without a deal with the European Union. In a television debate he ruled out the so-called backstop, which was originally agreed between the EU and London to prevent a new border between Northern Ireland and Ireland. Johnson does not want the negotiations to be extended beyond 31 October. This makes a no deal exit more likely. But if Johnson turns Britain into a big tax haven, the economy is likely to boom and the pound will rise again.
The end is near
Bitcoin, Ethereum, Litecoin, Eos, etc. are also facing adversity – the courses are currently in a real deep intoxication. The USA apparently wants to put the digital substitute currencies on a leash. On Tuesday, US Treasury Secretary Steve Mnuchin declared the use of crypto currencies a “danger to national security”. The politician used heavy verbal guns: “Cybercrime, tax evasion, blackmail, illegal drugs and human trafficking” – all this was financed with it. The state would not ban crypto currencies, Mnuchin said, but it would enforce compliance with financial market rules. In addition, the seven most important industrial countries also want to limit the risks of new digital currencies, according to French figures.
This is what the day brings
In the afternoon, the free real-time prices on your trading platform could move strongly. At 2:30pm the industry index oft he Philly Fed will be published.
At the same time the American first applications for unemployment assistance follow.
At 4:00pm the US early indicators are announced.
At 8:15pm the boss of the New York Fed, John Williams, (voting-entitled in the FOMC) steps with the annual meeting of the Central bank Research Association at the podest.
The G7 meeting of finance ministers and central bank governors will conclude in Chantilly.
Microsoft in particular is likely to cause a stir with the quarterly figures.
The Bernstein Bank wishes you successful trades!
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