07.02.2020 – Daily Report. Another divided world on the stock market: The indices on Wall Street once again set new records. Asia is playing hard to get. And investors in Frankfurt are positioning themselves more on the sell side. Because German industry is weakening massively. Furthermore, many brokers want to wait for the figures from the US labour market.
Losses on the German stock exchange
Investors in Frankfurt initially played it safe on Friday afternoon. The DAX slipped 0.6 percent to 13,500 places. Yesterday, the leading index had reached 13,610 points at its daily high, thus missing a new record by 30 points. The euro also weakened on Friday. EURUSD slipped to a four-month low of 1.0963.
Industrial production at eleven-year low
The slight depression was triggered by German industry, which weakened massively at the end of the year. Total production in December was 3.5 percent below the previous month’s level – the sharpest drop since the financial crisis at the beginning of 2009.
Investors in Asia are hesitant
The corona virus also remained in the headlines. China suspected that the epidemic had passed the peak – there were around 31,000 cases and over 600 deaths. The nightmare at sea is currently being experienced by the passengers of the “Diamond Princess”: the cruise ship currently quarantined off Yokohama reported 41 new infections. This brings the total number of cases to 61.
The CSI-300 closed the morning unchanged at 3,900 points. The Nikkei 225 started the weekend 0.2 percent weaker at 23,828 points on Friday. However, the yield for the trading week is plus 2.7 percent.
Record hunt in New York
Spurred on by predominantly strong corporate figures, the US stock markets had gone on a record hunt the previous evening. So far, more than half of the companies have reported figures, and a good two thirds have exceeded forecasts. No wonder that the Dow Jones Industrial, S&P 500 and also the high-tech index Nasdaq 100 set historic records.
The Dow closed the day up 0.3 percent at 29,380 points. The S&P 500 also gained 0.3 percent to 3,346 points. And the Nasdaq 100 gained 0.8 percent to 9445.92 points.
Waiting for redemption on oil
On the oil market, the bears continued to have the say. Prices slipped by 0.4 percent, WTI cost 50.7 dollars, Brent was sold for 54.70 dollars. The hoped-for cutback in production will probably not happen because Moscow is reluctant. At least that’s what the financial news service “Ransquawk” reported. The Joint Technical Committee (JTC) of OPEC+ had met in Vienna to discuss a reduction in output.
What the day brings
With the US Labour Market Report for January, the only top event of the day is scheduled for 2:30pm.
As always, you can find the overview here: Market Mover
The Bernstein-Bank wishes successful trades and a relaxing weekend!
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