What’s next? – DAX 12.07.17

DAX

The DAX futures were 0.32 percent higher on Wednesday by 07:05 GMT to trade at 12,458.50 points, with investors pending on Wall Street’s opening direction to define course, while keeping an eye on Fed’s Janet Yellen speech later in the session.

As we said at the beginning of this week, the data front is thin and offers not relevant publications, at least not in Germany. For the day, an auction of 10-year government bonds is due to take place at 09:35 GMT. Also, Eurozone’s industrial production will be out at 09:00 GMT.

Federal Reserve Chairwoman Janet Yellen will be speaking at 14:00 GMT. Traders will closely monitor this event in search for hints on the future of monetary policy in the world’s first economy, especially in terms of interest rates and balance sheet adjustments.

The German index closed at 12,481.89 on Tuesday, adding 44.87 or 0.36 percent in the day, with media, basic resources and technology contributing the most to gains.

Pushing stocks upwards, we’ve seen Bayerische Motoren Werke AG up 1.70 percent to 83.010, Daimler AG NA O.N. rising 1.25 percent to 64.150 and Thyssenkrupp AG O.N. adding 1.22 percent to 26.470.

On the downside, RWE AG ST O.N. notched down 1.24 percent to close at 17.550. Henkel & Co KGaA AG Pref fell 1.17 percent to 118.20 and SAP SE dropped 1.07 percent to 90.330.

Once again, the index broke below the 12,500 mark, not being able to take significant distance from it. Trading remains very choppy by the time of this writing and we expect things to keep going within a tight range as no key publications are on schedule. We suggest looking into strategies that would allow you to take advantage of the current dynamics.