The season of records

By 24/04/2019News


24.04.2019 – Daily report. Hardly a breather after the Climbing Tour: On Wednesday, the DAX only slightly reversed after the Ifo index was presented. In the meantime, it has settled in at a lofty altitude and once again reached a new high for the year. No wonder, since both the S&P 500 and the Nasdaq Composite as well as the Nasdaq 100 had gained the previous evening thanks to the US balance sheet season – and each marked an all-time high on the basis of the closing levels.

Ifo brakes bulls only briefly

The bulls can be happy about the share price performance on the stock exchange: With around 12,290 points, the DAX set a new record for the current year in the morning. In the meantime, the Ifo Institute put obstacles in the way with mixed failed data. “The German economy continues to lose momentum,” said Ifo President Clemens Fuest. After all, the business climate index reached 99.2 points, which slightly beat some forecasts but undercut others. By the way, we have compiled all the economic data for you here: Market Mover
On the other hand, Wirecard shareholders were pleased with the results. With Softbank, the payment service provider has gained a renowned technology investor as a major shareholder and intends to acquire around 6 percent of the share capital via a convertible bond. Purchase price: 900 million euros. A genuine sign of confidence. The volatility of this share is fierce, fierce I say.

Closing records on Wall Street

The US stock market had created a new buying mood on the evening before: Thanks to predominantly good balance sheet figures and positive data from the US real estate market, the Dow Jones Industrial recorded a plus of 0.6 percent to 26,656 points at the closing bell. Sales of new buildings in March were better than expected.
The market-wide S&P 500 rose by as much as 0.9 percent to around 2,934 points, thus outperforming its all-time high of last September of 2,931 points. The Nasdaq 100 selection index also closed at a record high of 7811 points, reaching a gain of 1.3 percent at the end of trading. The Nasdaq Composite closed at almost 8,121 points, just short of the record of 8,110 points set last August.

Caution in Asia

However, investors in Asia remained largely covered on Wednesday as the Nikkei index in Tokyo rose at its highest level in over four months. But then it crumbled as brokers feared a poor balance sheet season. At the end it marked a minus of 0.3 percent to 22,200 points.
Investors in China were somewhat more courageous. The CSI 300 rose by 0.3 percent to 4,030 points. Speculations were circulating on the floor that the central bank in Beijing would put its plans for a far-reaching easing of monetary policy on ice due to a recovery of the Chinese economy. And this would mean a lack of cheap money to keep the rally going. After all, the hope of a continuation of the tariff negotiations between China and the USA carried the prices.

New China-USA round of negotiations

In the coming week, another high-ranking US delegation is to travel to Beijing for negotiations. Specifically, trade commissioner Robert Lighthizer and finance minister Steven Mnuchin will continue talks with deputy prime minister Liu He on April 30. Liu will then travel to Washington and continue the talks in Washington on 8 May. We are curious to see what happens if the talks unexpectedly break down. Or conversely, how the stock market will react when the deal is finally signed. Volatility is likely to rise sharply. But experienced traders won’t be shocked – with a professional platform for online trading with CFDs, a solid profit could be made.

This is what the day brings

Wednesday will bring hardly any relevant economic data, but a lot of US balance sheet data. For example, AT&T, Boeing and Caterpillar will be reporting at 1 p.m. German time. Microsoft, Facebook and Visa will be presenting their figures post-trading at 10 pm.
For friends of the energy market it becomes at 4.30 o’clock exciting, then the crude oil stocks of the national Energy Information Administration (EIA) are announced.
The Bernstein Bank wishes you successful day trading!

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