Analysis and Recommendation: The DAX 30 fell 119 to trade at 10741.00 as traders looked at dropping oil prices with Germany on holiday tomorrow and
The DAX 30 fell 119 to trade at 10741.00 as traders looked at dropping oil prices with Germany on holiday tomorrow and Friday. European equities dipped back in negative territory on Wednesday as investors fretted over renewed weakness in global commodity markets.
Once again, the price of oil is the main focus for markets Wednesday. After a brief reprieve on Tuesday, with both U.S. crude’s West Texas Intermediate (WTI) and the global benchmark Brent futures rising more than 2.5 percent each, the upward momentum did not continue.
Brent was trading down over 2 percent just below $37 per barrel, while, U.S. WTI crude slipped even further, down around $1 below $36.85, as higher supplies and slowing demand weighed on sentiment. Some of the underachievers in the oil and gas sector included Seadrill and BP.
German stocks outperformed European and global peers in 2015. Investors are betting on more gains next year.
The DAX Index climbed to 27 fresh peaks this year before tumbling into a bear market, and volatility more than doubled. Still, it’s poised to end the year up 11 percent, beating the Stoxx Europe 600 Index and the MSCI All Country World Index.
Strategists predict the benchmark will rally in 2016 on optimism that low oil prices and a weak euro will benefit companies. While exporters got an early boost from the European Central Bank’s quantitative-easing measures this year, a rout triggered by China’s surprise currency devaluation and Volkswagen AG’s emissions scandal wiped out as much as $368 billion from the value of German companies.
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Today’s economic releases:
Cur. |
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Event |
Actual |
Forecast |
Previous |
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USD |
API Weekly Crude Oil Stock |
|
|
-3.600M |
|
||
GBP |
Nationwide HPI (YoY) (Dec) |
|
3.8% |
3.7% |
|
||
GBP |
Nationwide HPI (MoM) (Dec) |
|
0.5% |
0.1% |
|
||
USD |
Pending Home Sales (MoM) (Nov) |
|
0.5% |
0.2% |
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USD |
Crude Oil Inventories |
|
-2.480M |
-5.877M |
Upcoming Economic Events that you should be monitoring:
Thursday, December 31, 2015
Cur. |
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Event |
Actual |
Forecast |
Previous |
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|
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Japan – Exchange Holiday |
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Germany – New Year’s Eve |
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AUD |
Private Sector Credit (MoM) (Nov) |
|
0.6% |
0.7% |
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||
USD |
Initial Jobless Claims |
|
270K |
267K |
|
||
USD |
Chicago PMI (Dec) |
|
49.8 |
48.7 |
|
||
USD |
Baker Hughes U.S. Rig Count |
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|
538 |
Government Bond Auctions
Date Time Country
Dec 29 11:10 Italy Auctions CTZ
Dec 29 n/a UK Announces details of Gilt auction on Jan 05 & 07
Dec 29 19:00 US Holds 5-year note auction
Dec 30 11:10 Italy Auctions BTPs/CCTeus
Dec 30 19:00 US Holds 7-year note auction