Tuesday, 19 September 2017

What’s next? – DAX 19.09.17

Posted by Valentine at 12:32 Labels:

DAX

The DAX futures traded 0.18 percent lower at 12,531.0 points as of 08:40 GMT on Tuesday, as attention redirected to the Fed’s monetary policy meeting and a batch of economic releases in Europe and the United States later in the day.

On the European data front, Germany and the Eurozone will count on ZEW economic sentiment and current conditions as of 09:00 GMT. In the previous session, EU’s consumer price index for August came in aligned with analysts’ expectations for a 0.3 percent monthly build.

Today in the US, traders will receive building permits and housing starts for August at 12:30 GMT, together with export/import price indexes and second-quarter current account.

The Federal Reserve kicks off its two-day September monetary policy meeting on Tuesday and market players are pending on Chairwoman Janet Yellen’s remarks on Wednesday in search for hints on the future of short term interest rates and the reduction of Fed’s massive stimulus.

According to Fed funds tracked by CME Group’s, traders are currently pricing in a 42.5 percent probability of a 25 basis point by December.

The German benchmark ended 0.32 percent higher to close at a 1 month peak on Monday, with industrials, technology and food & beverages contributing most gains.

The best performers of the session were Infineon Technologies adding 1.56 percent to 20.825, BASF rising 1.46 percent to 87.460 and Deutsche Boerse up 1.22 percent to 94.590.

The worst performers of the session were Thyssenkrupp, which eased 0.74 percent to 25.660, Vonovia SE down 0.59 percent to 36.22 and Continental falling 0.58 percent to 205.75.

Market analysts still believe the index has room to grow in the next few months, especially once the September elections are left behind and the European Central Bank unveils monetary plans.

Following this line of thought, the DAX is likely to extend to 13,000 and in case of breaking above it, extending its gains until 15,000. The 12,500 is still worth monitoring as sellers could take the benchmark below that mark eventually.

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