29.03.2019 – Daily report. Behavior, but it’s bound to go up. The DAX marked a plus in early Friday trading. Thanks to the tailwind from overseas, the German stock market continues to buck the Brexit chaos. Investors in global trading are hoping for a breakthrough in the Chinese-American Trade War. In addition, economic data from the USA is expected this afternoon.
Barrier at 11,500 points
For the DAX, early trading saw an increase of around half a percent, but the indicator did not manage to break the 11,500 mark. The usual recovery on the labor market was only a side issue. The Federal Employment Agency reported around 2.3 million unemployed in March. This was 72,000 fewer than in February and 157,000 fewer than a year ago. The unemployment rate slipped by 0.2 percentage points to 5.1 percent. Optically, Deutsche Telekom suffered heavy losses. However, the share was only traded ex-dividend. However, negative analysts’ comments on the merger of Sprint and T-Mobile in the United States also ticked across the screens.
Wirecard vs. Financial Times
Wirecard came under pressure over an entertaining public feud with the Financial Times: Shortly after Wirecard sued the newspaper and its author Dan McCrum for damages, the paper shot back. The latest FT article on Wirecard states that many customers in Asia such as Centurion, PayEasy and Maxcone do business on a grand scale in the gambling industry. Even worse: Supposedly also in the porn industry! Shocking… The question arises whether the stock sellers are now prude, or whether they do not believe in solvent business partners. Whatever the case may be, a stock has seldom been as naked in the spotlight as Wirecard. Whether rightly or wrongly, must be seen.
Waiting for news from London and Beijing
Meanwhile, brokers in Frankfurt were waiting for movement at the currently smouldering top events. Once again a vote is due in London: In the afternoon, the British Parliament will again decide on the EU withdrawal agreement. However, this is only about the withdrawal treaty, not the political declaration on future relations with the EU. Whether the completely divided House of Commons will finally approve the treaty is in the stars.
In China, negotiations with the USA in the customs dispute are continuing. So far, both sides have adhered to the self-imposed news embargo. But if information is pierced, the stock market will react immediately. And there was also a little substance: US Treasury Secretary Steven Mnuchin spread a positive mood about the course of the talks on the fringes of a round of negotiations.
Share price surge from Asia
Prices in Asia rose accordingly: In Tokyo, the Nikkei closed Friday 0.8 percent higher at 21,206 points. This represents an increase of around 6 per cent on the books in the first quarter. There was an enormous buying mood in China, where the CSI 300 rose by a whopping 3.9 percent on Friday to close at 3,872 points. The bulls are rubbing their hands: In the first three months, the China index thus gained 29 percent.
Gains on Wall Street
Investors in New York also showed a cautious buying mood yesterday. The Dow Jones Industrial closed the day up 0.4 percent to 25717 points. The S&P 500 also gained 0.4 percent to 2815 points. And the Nasdaq 100 climbed 0.2 percent to 7320 points. The dripping economic data was ticked off calmly. For example, the third estimate of gross domestic product for the fourth quarter and the unfinished house sales in February were weaker than expected. The sum of weekly initial applications for unemployment assistance was somewhat more positive than expected. All economic data can be found here: https://bernstein-bank.com/de/research/#Market
The Dow is dancing on the 50-day line
And now again a little hint for the friends of simple chart analysis: If you look at a day chart of the Dow Jones, you will see something interesting. The lower deflections of the candles run in the past four days twice exactly up to the moving 50-day average. Then there was the recovery. So there seems to be a fraction of optimists who think buying in this terrain makes sense because they don’t believe the index will fall below the 50 line. You should keep this in mind on your trading platform in order to intervene quickly and effectively via direct market access with CFD if the situation requires it.
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This is what the day brings
This afternoon, investors are looking for economic data from the U.S. again. The Chicago Purchasing Managers’ Index for March will start at 14:45. Forecast: 57.0. Shortly thereafter, consumer confidence at the University of Michigan in March is running on the screens at 15.00 hrs. Forecast: 97.6. Also at 15.00 o’clock the US sales of new houses are expected to rise in February.
Important Notes on This Publication:
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