The DAX hesitates

By 11/12/2019News

11.12.2019 – Daily Report. After a dramatic Tuesday, the stock market tries unsuccessfully to recover on Wednesday. The German benchmark index is oscillating sideways. Once again, contradictory reports about a rapprochement in the customs dispute between China and the USA are causing restraint. And global trade remains cautious because of the Fed as well.

The DAX is losing its courage

At first it looked like a recovery. But most recently, the German benchmark index lost its early gains. The indicator was 0.1 percent higher at 13,087 points. Yesterday, after a meagre start, prices slipped and fell to 12,887 points. This is how weak the DAX had last been on October 31. Then the index rose again and the losses were reduced to 0.3 percent. Interestingly, the German stock market indicator yesterday turned pretty much on the 50-day line, which runs at 12,891 points. Once again we can rely on the basics of chart analysis.

Back and forth in the customs dispute

The reason for yesterday’s U-turn was a report in the Wall Street Journal. According to the report, the start of further US punitive tariffs on Chinese goods scheduled for Sunday could possibly be postponed. The paper referred to members of the Chinese and American negotiating delegations. Furthermore, there should be no hard time limit for the negotiations – so no time pressure.
On the other hand, economic advisor Peter Navarro on Fox News dampened expectations. The hardliner Navarro said there was no indication that December tariffs would not come into force. He added that it is up to the Chinese whether there is a deal or not. White House Chief of Staff Mick Mulvaney also confirmed that tariffs depended on how the negotiations developed, and at least interjected that they were “pretty good”. Probably the struggle for a customs deal will continue until the deadline on Sunday. So volatility is guaranteed – good for you when you trade CFDs.

Wait and see in Asia

Against this backdrop, investors in Tokyo held out sideways. The Nikkei lost 0.1 percent to 23,392 points. The Chinese CSI-300 closed almost unchanged at 3,903 points.

Restraint in New York

Trading in New York was largely undramatic. The Dow Jones closed Tuesday 0.1 percent lower at 27,882 points. And the market-wide S&P 500 also fell by 0.1 percent to 3,132 points. The Nasdaq 100 also lost 0.1 percent to 8,354 points.

Dampers for the Tories

A look remains at the British pound, which recently fell slightly to 1.1855 euros. The reason is a cold shower for Prime Minister Boris Johnson. According to an eagerly awaited last survey before tomorrow’s election, the Tories’ lead in seats in the House of Commons has more than halved. According to YouGov, Conservatives still win 339 of the 650 seats in the House of Commons, 20 less than in the previous YouGov survey at the end of November. Labour comes in at 231, 20 more than before. In addition, smaller parties gained. All in all, the previous survey had revealed a majority of 68 Conservative deputies; now election researchers only expect 28 seats ahead of all other parties. Since YouGov is regarded as extremely reliable, this again looks more like unclear power relations and a persistent Brexit stranglehold.

This is what the day brings

The event of the day is the result of the Federal Reserve meeting at 20:00. Hardly any broker, however, expects another interest rate hike after three key rate cuts.
US consumer prices will arrive at 3:30pm.
At the same time the American real incomes are reported.
At 4:30pm the US Department of Energy publishes its oil report.
All dates can be found here: Market Mover

The Bernstein Bank wishes you successful trades!

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