17.12.2019 – Daily Report. International bull market after the customs deal: records on Wall Street, profits in Asia. Only the DAX hesitates after its high for the year on Monday. There was a bearish surprise with the British pound.
Frankfurt is adamant
Once again, the stock market players on the German stock market gave the spoilsports. Most recently, prices on the trading platform were predominantly red, with the DAX slipping 0.7 percent to 13,318 points.
On the previous day, the DAX had reached its highest level to date in 2019 at 13,425 points. The Dow future fell by 0.1 percent, the contract on the S&P 500 remained unchanged. One reason for this was the fact that the customs deal party is now over and most brokers realized that the devil is in the details. On the other hand, new Brexit turbulences are looming.
Surprise at Sterling
Boris Johnson had a cold shower ready for the shareholders and sterling bulls – the pound put back strongly. According to reports by ITV, “The Times” and “Financial Times”, the British prime minister wants to legally block an extension of the transitional phase after the Brexit. This would put pressure on Johnson and his parliament to negotiate a trade agreement with the EU within eleven months of Britain’s withdrawal from the EU on 31 January. An extension beyond the end of 2020 would then be illegal. Johnson actually has more than twice as much time. And all of this sudden brought the possibility of a hard and chaotic Brexit back into play.
Asia wants to go up
Investors in Asia, on the other hand, took the momentum from Wall Street with them. The Nikkei ended Tuesday with a gain of 0.5 percent at 24,066 points. The Chinese CSI-300 closed the morning with a solid premium of 1.4 percent at 4,042 points. Strong industrial production in November also provided a tailwind there.
Record hunting in New York
Fueled by the rather meager tariff deal, investors on Wall Street took to the streets. All three major indices reached record highs on the third day in a row. The Dow Jones Industrial closed 0.4 percent higher at 28,236 points. The broad-based S&P 500 gained 0.7 percent to 3,191 points. And the Nasdaq Composite Index gained 0.9 percent to 8,814 points. In the Dow, Nike, Apple and Microsoft shares each set new records. The stock market initially ignored the political theatre for impeachment in Washington.
Rally at Palladium
Meanwhile, palladium cost more than 2,000 dollars an ounce for the first time. The white precious metal is used both as jewellery and in car catalytic converters. There are currently supply bottlenecks in South Africa due to the poor energy supply – and demand from the global auto industry remains high.
This is what the day brings
The calendar of events brings some important dates on Tuesday, you can find everything here: Market Mover
At 2:30pm the start of construction and approvals will be received in the USA in November.
At 3:15pm industrial production will followfor November.
At the same time, capacity utilization is reported for November.
And at 7:00pm the Fed President of Boston, Eric Rosengren, gives a speech.
The Bernstein Bank wishes you successful trades!
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