After the first TV duel between US President Donald Trump and his challenger Joe Biden and mixed economic data from China, the stock markets initially started the trading day cautiously. Good data on retail sales in Germany and a positive ADP labor market report from the US supported the equity markets during the day. The DAX® closed little changed at 12,825 points and the EuroStoxx®50 at 3,210 points. Tomorrow, leading indicators from Europe and the weekly labor market report from the USA are due for publication.
Bond yields have initially stabilized after the downward movement since the beginning of the month. The yield on 10-year Bunds improved slightly to -0.53 percent and the yield on comparable US bonds to 0.68 percent. Meanwhile, gold and silver remained calm. Rather, the music played at palladium and platinum. Platinum hit the $ 900 per troy ounce mark today. Reports of an expansion of oil production in Libya and Iran as well as the ongoing Corona crisis put pressure on the oil price today. The quotation for a barrel of Brent Crude Oil dropped below the $ 41 mark.
Company in focus
Covestro plans to take over the sustainable coating resins business from Royal DSM for 1.61 billion euros. Investors reacted to the news with a sharp discount. The share of Deutsche Telekom rebounded today and is now hanging from the 10 day average line. Above EUR 14.60 there is a chance of a recovery to the most recent high of EUR 15.50. K + S broke out of the medium term downtrend today. Further buying impulses could follow above EUR 6. The share of ProSiebenSat.1 rose above the EUR 10.90 mark. The CEO sees a slight recovery in advertising revenues. In addition, Winsor Medical is to be sold. VW-Lenker Herbert Diess is sticking to the current forecast for the full year and confirmed the investment plans at the Annual General Meeting today. The preference share showed little change today.
In the USA, among other things, the shares of Booking.com, Nvidia and Tesla with significant markups in the trade. Alphabet, Amazon and Apple meanwhile, continued the recovery course in small steps.
Data on US car sales will be released tomorrow. This moves the shares of the carmaker BMW, Daimler and VW in the focus of investors.
- Japan – Tankan Report, Q3
- Germany – Markit / BME purchasing managers’ index for German industry, September
- Europe – Markit Industrial Purchasing Managers’ Index for the euro zone, September
- Europe – Labor Market, August
- United States – Initial Jobless Claims for the Week Ending September 26th
- USA – ISM Industrial Purchasing Managers’ Index, September
Chart technical outlook
Resistance marks: 12,900 / 13,060 points
Support marks: 12,420 / 12,600 / 12,700 points
After a weak start and a setback to 12,720 points, the DAX® initially turned upwards. At 12,850 points, however, the bulls ran out of breath and the bears finally had the last word. The support at 12,700 points remains intact. This means that there is still a chance of recovery up to 12,900 points. A significant movement up or down, however, is indicated at the earliest with a breakout of the 12,600 and 12,900 points range.
DAX® in points; 4-hour chart (1 candle = 4 hours)
Observation period: 07/14/2020 – 09/30/2020. Historical considerations are not reliable indicators for future developments. Source: tradingdesk.onemarkets.de
DAX® in points; Weekly chart (1 candle = 1 week)
Observation period: October 1, 2013 – September 30, 2020. Historical considerations are not reliable indicators for future developments. Source: tradingdesk.onemarkets.de
Inline warrants on the DAX®
|Underlying||WKN||Sales price in euros||Lower knock-out barrier in Pt.||Upper knock-out barrier in pt.||Final Valuation day|
|DAX®||HR03N7||4.69||12,000||15,100||December 17, 2020|
Source: HypoVereinsbank onemarkets; As of: 09/30/2020; 5:43 pm
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The daily outlook for October 1st: DAX unchanged. Covestro and ProSiebenSat.1 in focus! first appeared on onemarkets blog (HypoVereinsbank – UniCredit Bank AG).
Author: Richard Pfadenhauer