25.04.2019 – Daily report. On Thursday, the Frankfurt stock market entered a brief period of calm after the most recent price run. The brokers analyzed the results of the balance sheet season in Germany and the USA. And digested the news of the busted bank merger between Deutsche Bank and Commerzbank. Impulses from overseas were otherwise rather scarce. The same applies to the new economic data.
Slight minus for the DAX
In line with the prevailing calm in global trading, the DAX initially took it slowly. On Thursday morning, the leading index mostly remained at a minimal loss of 12,300 points. According to the interim results, Bayer was among the index winners. Both sales and EBITDA exceeded forecasts, and the Group confirmed its outlook for the current year. Wirecard also presented figures: The payment service provider intends to increase its dividend by 2 cents to 20 cents per share. The DAX company confirmed its earnings outlook for the current year. Various companies also reported their results in the MDAX.
Bank merger burst
A news item from the financial sector caused a sensation on the stock exchange: Deutsche Bank and Commerzbank will definitely not merge. Ad Hoc reported Deutsche Bank: “After a thorough review, the board of Deutsche Bank today came to the conclusion that a merger with Commerzbank would not offer sufficient added value”. He added: “Therefore, both banks have decided not to continue the talks”. As a result, Deutsche Bank’s share price rose at an above-average rate and Commerzbank shares lost a lot of ground.
Asia without a clear trend
Mixed news had arrived from Asia in the morning. First, the vice-governor of the Chinese central bank, Liu Guoqiang, signaled that China was not striving for any changes in monetary policy. The People’s Bank of China will therefore not tighten the monetary screw to stifle an overheated stock market boom; nor will it support the economy. In addition, Prime Minister Li Keqiang warned against a continuing headwind for the economy of the People’s Republic. Many investors had probably hoped for flanking new stimuli. The Chinese CSI 300 finally fell by 2.2 percent to 3,942 positions.
Meanwhile, Japan’s anti-deflation policy appears to be continuing indefinitely. As expected, the central bank has reaffirmed its ultra-loose monetary policy. The monetary authorities want to keep interest rates low “at least until around spring 2020”. The Nikkei left trading with a plus of 0.5 percent to 22,308 jobs.
Setbacks also in New York
The night before, investors on Wall Street had taken it easy. The Dow Jones Industrial closed the day 0.2 percent lower at 26,597 points. Here, the construction machinery manufacturer Caterpillar made for long faces: profit margins were below expectations, and the Group also warned of a declining market share in China. The S&P 500 collective index also fell by 0.2 percent to 2,927 positions. The Nasdaq 100 lost 0.3 percent to 7,784 points.
This is what the day brings
If we look at the scheduled economic data, the Thursday seems to be rather quiet. However, you may want to make regular market updates – especially regarding the China-USA tariff dispute.
At 14.30 o’clock of German time the weekly first applications for unemployment assistance arrive, the prognosis lies here with 209.000.
At the same time, the US order intake for durable goods in March is running through the tickers. The forecast for the core rate here is plus 0.1 percent.
All-important data can be found here: Market Mover
The Bernstein Bank wishes you a big win on your trades for the day!
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