Sunday, July 14, 2019
Profit warnings and layoffs are a clear indication that global growth has exceeded its peak. If the economy weakens, sales weaken. The numbers will be greeted again next week. In the United States, the season of balance begins.
According to experts, investors must be prepared for further disappointment in the next budget season. "The latest corporate figures show that the peak of global growth is over," says Axel Cron, Germany's leading asset manager in HSBC. Investors feared not only to weaken sales due to cooling but also to increase costs due to trade conflicts.
in customs disputes between the United States and China, stockbrokers await progress in the resumed negotiations. At the same time, new tensions between the United States and the EU have threatened, warns Neil Wilson, chief analyst at the online broker Markets.com. "The White House speaks of the French digital control not happy. "US President Donald Trump should fight with punitive tariffs.
In the current week, numerous profit warnings, including the maximum Dax weight BASF as well as from Daimler, on the mood of investors. The main German index Dax closed on Friday only at a negative 12.323,32 points.
The only thing that prevents the major price jumps at the moment is the View of one easier monetary policystates Martin Lück, chief investment strategist for Germany, Austria and Europe of the East at the world's largest asset manager, Blackrock. On the stock market, a cut by the US Federal Reserve (Fed) at the end of July is certain. The probability of such a step by tax investors of the European Central Bank (ECB) of at least 35%.
With the prospect of an early Fed rate cut on Wall Street, the hunt for the record continued. The US default index Dow Jones rose 0.9 percent on Friday to 27.332 points. The widest S & P 500 closed for the first time above the 3000 brand: it has increased by almost 0.5% on almost 3014. The technology exchange Nasdaq added 0.6 percent to 8244 points.
The Fed presents the economic relationship
The prelude to the US budget season is traditionally the big banks. During the new week open, among other things Citigroup, Goldman Sachs. JPMorgan is Morgan Stanley his books. In Germany, the software company produces SAP Thursday the first service.
Furthermore, there are numerous economic data on the program. A special attention paid Börsianer the Fed's economic report on Wednesday. From the so-called Beige book I hope to see the timing and pace of expected US interest rate cuts.
the United States retail sales The day before, they will take a closer look at the same problems. Private consumption is considered the cornerstone of the world's largest economy. Tuesday will also be the ZEW index published. Reflects the state of mind of German stock market professionals.
On Friday, the options expire on indices and individual securities. In the past few days, stock prices usually fluctuate sharply as investors try to shift the prices of those securities they hold derivatives in a favorable direction.
. (tagsToTranslate) Dax Companies (t) Dow Jones & Company (t) FedEx (t) Business Conflicts (t) BASF (t) Daimler AG (t) JPMorgan Chase & Co. (t) Citigroup (t) Goldman Sachs (t) Index Morgan Stanley (t) ZEW