Thursday, 6 July 2017

What’s next? – DAX 06.07.17

Posted by Anonymous at 09:47 Labels:

DAX

The DAX index futures were 0.20 percent higher by 05:10 GMT to trade at 12,480 points, with market participants looking ahead of further economic reports later in the day, while weighing in rising geopolitical tensions in the Korean peninsula.

Late on Wednesday, UN Ambassador Nikki Haley warned that the United States is ready to take a military approach if necessary to counteract North Korean threats.

Earlier this week, Kim Jong-un’s communist regime tested an intercontinental ballistic missile that allegedly felt into Japan’s exclusive economic zone. As a consequence, the US called an urgent meeting of the UN Security Council to evaluate further steps and sanctions.

Europe is a key ally of the United States and any military action could have serious influences on market sentiment and military supply sectors.

The DAX settled higher in Frankfurt on Wednesday, with Pharmaceuticals, Healthcare and  Consumer sectors contributing most gains. The index was up 0.13 percent to 12,453.68.

Among best performers were Adidas AG adding 4.90 percent to 176.60, Deutsche Boerse AG moving 3.20 percent to trade at 95.340 and Fresenius SE & Co up 1.02 percent to 75.970.

Pushing lower were Bayerische Motoren Werke AG, down by 0.91 percent to 81.530, RWE AG ST O.N. falling 0.83 percent to 17.345 and Deutsche Telekom AG easing 0.77 percent to 15.555.

German stocks rose on the back of upbeat economic data. The services PMI from Markit came in at 54.0, outperforming expectations for a 53.7 reading.

Ahead in the session, traders will get Germany’s factory orders for May as of 06:00 GMT, with a 2.0 percent increase eyed from a prior 2.1 percent decline.

The index is remains in consolidation around the 12,550. Traders are awaiting latest employment data in the US on Friday to assess the impact on Fed’s monetary policy plan. Interest rate hikes in the US attract more capital to the country, which is seen negatively for other markets.

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