WEEKLY OUTLOOK: DAX investors build on the principle of hope and economic data | 11/30/20


FRANKFURT (dpa-AFX) – The hope of an effective agent against the corona virus should continue to support the German stock market experts in the new week, according to experts. There is also the prospect of a breakthrough in the ongoing Brexit negotiations between the European Union and Great Britain. However, investors should be on their guard: In view of the recent significant price increases, the Dax could quickly come under pressure again if there is negative news about the pandemic.

Currently, however, the stock market lights are still on “green”: “Optimism is spreading,” wrote analyst Claudia Windt from Landesbank Heleba. Recently, in the USA and around the world, the prospect of a regulated handover to the elected President Joe Biden and the introduction of the first cabinet members such as the former central bank chief spurred on Janet Yellen as the first Secretary of the Treasury in US history to capture the imagination of stockbrokers. At the same time, Windt also gave consideration: “It takes a good deal of confidence to gain something positive from the current infection situation in Germany, the extension of the partial lockdown and the associated economic adverse effects in the current quarter.”

Nevertheless, the latest news about promising vaccine candidates are a “game changer” for the stock market, said the experts at DZ Bank. This increases the likelihood that the world will return to normal in the coming months. So far, the vaccine news has particularly benefited stocks that had previously lost significantly. From the experts’ point of view, this price reaction is a foretaste of a sector rotation that should accompany investors on their way towards normalcy.

Against this background, the technical picture for the German leading index has recently brightened, said expert Andreas Büchler from Index-Radar: “The Dax has been crawling hesitantly for days now from below to the striking short-term sales area of ​​the previous months around 13,400 and 13,450 Points up. ” In contrast to previous attempts, however, stronger sales after these approaches have so far failed to materialize, which Büchler saw as a sign of strength. On weak days, an early stabilization was even possible at the 13,000 mark recently. “An upward breakout is more likely,” the expert concluded.

Market analyst Thomas Altmann from QC Partners warned at the same time: “After the long streak of profits, investors should not underestimate the risk of setbacks. To describe the stock markets as overheating is certainly not an exaggeration.”

In the new week, however, some economic data will be the focus for investors, said Robert Greil, chief strategist at the private bank Merck Finck. The expert particularly pointed to the ISM purchasing managers’ reports for November on Tuesday and Thursday as important indicators of sentiment for the US economy. The new week ends on Friday with the much-noticed monthly labor market report. But also in China, all important purchasing manager indices for the month that is expiring would be published by Thursday.

In this country, attention is focused on Thursday evening. Deutsche Börse then decides which companies have to leave the SDAX small cap index and are newly included. The corona pandemic has hit the stock markets hard overall, but there are also some winners from the crisis. Online trading and the virus control business are booming, and some companies are already knocking on the entry gate of the small caps index from this side.

In addition, given the expected inclusion of the energy company Siemens Energy, which went public at the end of September, in the MDAX, the leasing specialist GRENKE or Aareal Bank will also receive a place in the SDax as possible relegators from the index for medium-sized stocks. A hot head-to-head race is going on here, and according to current data, Grenke should be left out. / La / gl / he

— By Lutz Alexander, dpa-AFX —


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