What’s next? – DAX 16.11.17

The German stock index DAX futures reverted previous losses on Thursday pre-session hours, with sentiment showing signs of recovery and as traders awaited fresh economic data and corporate earnings reports later in the day.

German stocks ended in red territory on Wednesday, easing 0.44 percent with basic resources, technology and pharmaceuticals & healthcare contributing the most to losses.

Yesterday, the German trade balance for September came in at 26.4 billion euro from 16.1 billion in the previous month. Again, data continues to point at economic expansion.

The best performers of the session included Deutsche Bank, which added 1.91 percent or 0.295 points to 15.760, Commerzbank rising 1.84 percent or 0.215 points to 11.870 and Deutsche Boerse up 1.80 percent or 1.630 points to 91.940.

The worst performers of the session were RWE, which posted a 1.90 percent or 0.400 points loss at 20.655. Henkel & Co was down 1.64 percent or 1.90 points to 113.90 and Fresenius plunged 1.49 percent or 1.000 points to 66.210.

Attention in Europe today will be directed to UK retail sales for October at 09:30 GMT and the Eurozone’s consumer price index as of 10:00 GMT.

In the US, traders will focus on export/import price indexes, initial jobless claims and the Philly Fed manufacturing index. All those reports are scheduled at 13:30 GMT. Later on, industrial production for October is due at 14:15 with a 0.5 percent gain eyed.

The DAX eased positions from recent highs but remains above the psychological resistance of 13,000. It would be rather unlikely if the benchmark crosses that key level to the downside. The most possible scenario points at a recovery to 13,100.

Fort Financial Services