12.11.2019 – Daily Report. Tailwind from the German economy: Germany’s leading index climbs ahead. Brokers also referred to the so far positive reporting season in the USA and Germany.
Profits in Frankfurt
The DAX rose on Tuesday morning. Most recently, the leading index held up 0.5 percent to 13,265 positions. The ZEW-Index from Mannheim was a source of joy, the economic expectations of the surveyed experts from the economy turned out much better than expected with – 2.1. All data can be found here: Market Mover
The consolidation of Wall Street at a high level also provided some impetus. Especially since the reporting season was well received in the USA and Germany. The most recent example of this was Infineon, which the stock market thanked with a full plus. Investors also hoped that the US would postpone punitive tariffs for the German auto industry. Otherwise, there was largely radio silence on the news front.
Nikkei in plus
Investors in China have been staying sideways lately. The Chinese CSI-300 closed unchanged at 3,904 points. In contrast, the Nikkei index rose by 0.8 percent to 23,520 points. The weaker yen provided a tailwind, and the USDJPY recently reached 109.164, a five-month low.
Mixed trend in New York
Wall Street, too, had shown no clear trend the previous evening. The Dow Jones achieved a minimal gain, but this was mainly due to price gains in the heavyweight Boeing share. The Dow recently closed 0.04 percent higher at 27,691 points. The closing record last Thursday was 27,774 points. The S&P 500 lost 0.2 percent to 3,087 positions, the Nasdaq 100 also slipped by 0.2 percent to 8,242 points.
Middle East powder keg
After the Israeli military action in the Gaza Strip and the rocket attacks of the Arabs on Israel, the oil market came into focus. Israel has switched off Baha Abu al-Ata, commander of the northern Gaza front of the Palestinian Islamic Jihad (PIJ), with a targeted military strike. The Israelis also killed Akram Al-Ajouri in Damascus, the PIJ liaison officer with the Iranian Al-Kuds Brigades in Syria. Around 50 missiles rained immediately on Israel, of which the Iron Dome defence system shot down almost two dozen. Israel justified the attacks with an imminent major offensive by the PIJ.
The always well-informed Debka website reported that Iran and its allies were currently discussing an attack on Israel. Which in turn would allow an Israeli air strike on Iran, perhaps with the support of the Saudis. If you are trading CFDs in the oil market, it is important that you keep an eye on the issue and keep market access open. The market still reacted calmly, WTI recently increased by 0.1 percent to 56.90 dollars, Brent also increased 0.1 percent to 62.27 dollars.
China faces the digital currency
Bitcoin initially hardly responded to a report from China and maintained a plus of 0.5 percent at 7,950 points. Jack Lee, Managing Partner of HCM Capital, told CNBC that Beijing has set the framework for a digital currency – Digital Currency Electronic Payment or DCEP. Lee is considered to be well connected because his investment company is supported by Foxconn Technology. With DCEP, the central bank is in a position to offer a crypto currency for commercial banks or retail traders such as Alipay or WeChat Pay. China could bring it to market within the next three months, the manager said at the Singapore FinTech Festival. And that probably means that the Western world will be focusing on regulation, which should cause considerable turbulence in the crypto market.
This is what the day brings
On Tuesday, there are no really market moving economic data on the calendar. Global trading focuses on news from the world of politics.
The Bernstein-Bank wishes successful trades!
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