Friday, 22 September 2017

What’s next? – DAX 22.09.17

Posted by Valentine at 11:11 Labels:

DAX

The DAX futures traded 0.23 percent higher at 12,584.5 points as of 06:30 GMT on Friday, with investors looking ahead to a speech from ECB President Mario Draghi later in the day.

European Central Bank president Mario Draghi said on Thursday that while the eurozone’s economic recovery is helping to reduce the number of non-performing loans on banks’ balance sheets, there are still big structural weaknesses that have to addressed.

Ahead in today’s session, market players will be focusing on the release of the German manufacturing and services PMIs for September as of 07:30 GMT. ECB Draghi is also scheduled to speak at 08:00 GMT and by that time we’ll count on activity data from the EU.

The German benchmark ended at 12,600.03, adding 30.86 points or 0.25 percent. Construction, insurance and industrials rallied, while telecoms, basic resources and utilities capped gains.

The best performers of the session were Commerzbank, which added 3.46 percent to 11.210, Deutsche Bank rising 2.69 percent to 13.935 and Heidelbergcement up 1.76 percent to 85.390.

The worst performers of the session were Thyssenkrupp, which eased 3.42 percent to 24.970, RWE falling 2.81 percent to 20.250 and E.ON, down 2.78 percent to 9.199.

Federal elections will be held on Sunday and therefore, we could expect cautiousness among market players. Germany is the EU’s strongest economy and its political future is a very serious matter for the whole bloc.

Therefore, consolidation is likely in today’s session. A status quo win could provide the DAX with upward impulse, taking it up to the 15,000 mark in the near term. A break below the current 12,500 would send the DAX back to the 12,300 level.

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