FXEMPIRE
All
Ad
Advertisement
Advertisement
Colin First
Add to Bookmarks

European shares dipped on Wednesday as poor corporate earnings in the pharmaceutical sector weighed on sentiment soured by trade tensions, with Washington preparing tariffs on another $16 billion of Chinese goods. 0716 GMT, the pan-European STOXX 600 was down 0.3% with the heaviest losses in Frankfurt where the DAX GDAXI lost 0.4 percent. Germany equities were mixed at the close on Tuesday, as gains in the Transportation & Logistics, Construction and Industrial sectors propelled shares higher while losses in the Retail, Food & Beverages and Financial Services sectors led shares lower. At the close in Frankfurt, the DAX gained 0.40%, while the MDAX index lost 0.38%, and the TecDAX index declined 0.37%. Advancing stocks outnumbered falling ones by 374 to 321 and 85 ended unchanged on the Frankfurt Stock Exchange.

DAX Likely to Remain Range-Bound As Key Asian Markets Closed in Red

Advertisement
Know where the Market is headed? Take advantage now with 

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

Asian shares extended their recovery into a fourth day on Wednesday, buoyed by strong U.S. earnings and expectations that Beijing will ramp up fiscal stimulus to cushion the impact of its worsening trade dispute with Washington. DAX 30 is trading nearly flat since trading session opened for the day and is currently at 12,686.27 up 0.30% on the day. U.S. futures are flat on Wednesday as the Sino-U.S. trade war escalated and investors waited for earnings results. There are no major economic releases scheduled for German market for rest of the week however market is expected to see some volatility post release of ECB’s economic bulletin.While Trade war between US & Europe is on mute, Trump has parked the threat of tariffs on European cars and US import tariffs of 25 per cent on steel and 10 per cent on aluminium are to remain firmly in place until further talks.

Germany being a major contributor to global automobile industry is still affected by US tariff’s as investors keep a keen eye on US tariffs over import of goods from allied countries.  USD’s price action has some influence in European market and with EURO trading positive against USD, German stock market is expected to remain on neutral/positive momentum during today’s trading hours. The index is trading range bound trapped within monthly high and lows and which is confirmed by RSI & Stochastic indicators which are used to measure momentum, both show neutral signal in hourly and daily charts. The index is expected to continue range bound movement as investors remain focused on Sino-US tariff proceedings while stock markets across globe gain influence from each others momentum and Key Asian markets such as Shanghai & Tokyo exchanges closed on dovish note while famous European index EUROSTOXX50 is trading nearly flat indicative of lack of trigger to push market on bull’s path in near future.

Advertisement
Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker