Time out after the rally

Trading desk

08.11.2019 – Daily Report. New caution after the record hunt: After the new records on Wall Street, the stock market is now taking it easier again. On the one hand, many brokers are making profits. On the other hand, new doubts about the conclusion of a customs agreement between Beijing and Washington are emerging.

Frankfurt resigns

Shortly before the weekend, many stock market participants played it safe on the German stock exchange – the DAX recently recorded a loss of 0.2 percent to 13,259 points. Now, the price gap of 13,227 points, which was torn yesterday, has come to the fore again. Yesterday, thanks to the prospect of a breakthrough between China and the USA, the German benchmark index reached its highest level since the beginning of 2018 at 13,301.

German exports surprise

Meanwhile, surprisingly positive news from German foreign trade supported prices: In September, exports rose by 1.5 percent compared to the previous month, according to the Federal Statistical Office. The most recent increase was in November 2017. As always, you can find the overview here: Market Mover

New doubts about customs deal

A media report on the customs dispute caused skepticism on the stock market. The US futures market declined and the yuan fell slightly. In the White House, there is supposed to be some strong internal resistance against a lifting of the US punitive tariffs against China, which were originally planned for 15 December. This was reported by the news agency Reuters. It is quite possible that new punctured internals will arrive on the weekend, shaking stocks, bonds and foreign exchange strongly at the beginning of next week. So nothing is safe except volatility – which doesn’t scare you when you trade CFDs.

Mixed Tendency in Asia

Furthermore, economic data from China had occupied the stock market this morning. The foreign trade figures were not quite as bad as many analysts had expected. In October, exports fell by 0.9 percent, imports even slipped 6.4 percent compared to the same period last year. The Chinese CSI-300 fell by 0.5 percent to 3,973 points. The Nikkei in Tokyo closed 0.3 percent higher at 23,392 points – the fifth consecutive week of gains. In the course of trading, the Nikkei had reached its highest level in 13 months.

Record hunting in New York

On Thursday, hopes of a gradual reduction in the trade war tariffs imposed by the US and China had set new records. This was accompanied by solid data from the U.S. labor market, with the number of first weekly applications for unemployment benefits falling slightly more than expected.
The Dow Jones Industrial closed with a plus of 0.7 percent to 27,674 points. The S&P 500 also posted a new final high, closing 0.3 percent higher at 3,085 points. The Nasdaq 100 achieved a plus of 0.3 percent to 8,220 points. Around two and a half hours after the start of trading, all three indices had reached record highs. Meanwhile, US bonds suffered under the new optimism: ten-year bonds fell to their lowest level since the end of July – yields rose for all maturities.

Swiss stock exchange at all-time high

A look at the Alpine republic remains: here, too, the stock exchange recorded a new record high in trading yesterday at 10,356 points. In the end, the SMI recorded a gain of 0.1 percent at 10,329 points. On Friday morning, however, the leading index was again down 0.3 percent at 10,297 points.

This is what the day brings

The appointment calendar is only sparsely filled at the end of the week.
At 4pm the US wholesale inventories for September are reported.
At the same time, the consumer confidence of the University of Michigan is published.
The Bernstein Bank wishes you successful trades and a relaxing weekend!

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