Monday, 25 September 2017

What’s next? – DAX 25.09.17

Posted by Valentine at 10:58 Labels:

DAX

The DAX futures traded 0.05 percent higher at 12,605.0 points as of 05:50 GMT on Monday, with investors feeling relieved as Chancellor Angela Merkel is set to stay in charge of Europe’s largest economy for another term following the results of Sunday elections.

Merkel’s Christian Social Union won 32.5 percent of the vote, remaining as the leading party in the Parliament, although it notched down from a 41.5 percent registered in the 2013 election.

The Social Democrats (SPD) dropped to a mere 20.0 percent, while the far-right AfD party managed to get 13.5 percent of the vote, allowing it to enter the parliament for the first time.

Now Merkel has to negotiate with other parties to form a coalition government excluding the SPD in order to stay in her position for another period.

As Merkel seems to be on track to stay, market players are feeling less worried about the future of EU’s first economy and therefore, that could unpin further gains for the DAX.

The index closed Friday’s session in 12,592.35, easing 7.68 points or 0.06 percent, with telecoms, technology and utilities weighing on the benchmark, while industrials, financials and food & beverages were able to cap some daily losses.

The best performers of the session were Infineon Technologies, which rose 1.29 percent to trade at 20.885, followed by E.ON SE NA added 1.24 percent to close at 9.313 and Deutsche Lufthansa rising 1.02 percent to end the week at 22.875.

The worst performers of the session were Deutsche Boerse, down by 4.11 percent to 90.150, Linde dropping 1.11 percent to close at 165.30 and Siemens easing 0.77 percent to 116.55.

Ahead in today’s session, traders will keep an eye on German business expectations, current assessment and the lfo business climate index for September. All reports will be released as of 08:00 GMT, with readings of 107.9, 124.8 and 116.0 seen respectively.

Attention will also be directed to a speech of the European Central Bank President Mario Draghi at 13:00 GMT for hints on the future of monetary policy.

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