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BDSwiss | October 19, 2017

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TOP 3 Headlines from 19.12.2016 Shortened trading week - BDSwiss

TOP 3 Headlines from 19.12.2016 Shortened trading week
Christopher Scharl

Will the Christmas rally continue?

Shortened trading week

ifo Business Climate Index

Main points:

  1. Speculations on a regular economic boom under an era of Trump have driven stock prices up the world over the last trading weeks. The DAX also benefits from the weakness of the EUR, which makes the goods of the export-oriented companies cheaper in other countries that are not paying in EUR and thus leads to higher sales of German companies. According to experts, the rally is likely to continue this week, albeit rather mildly so shortly before Christmas.
  2. Trading will be shortened this week. The London Stock Exchange will close for the week on 23.12.2016, and there will be no trading in Tokyo on Friday as they celbrate the birthday of the Japanese emperor. No big announcements are expected at the Bank of Japan’s meeting, as the economy has improved greatly in recent weeks.
  3. Today at 10:00 (GMT + 1) the current data on the ifo business climate index in Germany will be published. Experts expect a small increase from 110.4 to 110.7 points in December. The DAX is expected to start trading with small surcharges after the price had risen to more than 11,400 points on Friday.

Watch-List today:

  1. After a very strong exchange year with a low of 8,752.87 points, the DAX is currently recording a year-on-year increase of 8.75%. Caution is needed in the new year when the speculation surrounding Trump’s presidency is put to the test. The slightest indication of a failure to estimate the market is likely to drop the prices rapidly.
  2. The stock market lives from its stakeholders, who are now already in Christmas mood and will likely generate lower trading volumes over the next two weeks. The shortened trading weeks also promote this, as bankers use the opportunity for longer holiday periods.
  3. A surprising increase over the forecasted 110.7 points should give the DAX a further boost, while weaker figures would have a negative effect in the short term.

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