Markets

Weekly outlook: DAX is weak. Focus on leading indicators and key data for Q3!

Most of the stock markets gained somewhat in the past week. The gains in the leading equity barometers were between 0.7 and 4.1 percent. The markets came under pressure, especially in the second half of the week. Mixed economic figures, rising corona numbers and the first profit warnings sometimes caused uncertainty.

There are a number of important economic data on the calendar for the coming week. In addition, it is to be expected that some companies will publish key data for the past quarter in advance before the reporting season slowly gets going in the following week.

Investors went into risk-off mode at the end of the week. The yields thus fell into the area of ​​their weekly lows. The yield on 10-year Bunds closed at -0.544 percent and the yield on comparable US bonds at 0.66 percent. The uncertainty was also reflected in precious metals. Gold and silver were in demand on Friday and reached significant levels. Gold stabilized above 1,900 US dollars per troy ounce and silver rose to 24 US dollars per troy ounce. Meanwhile, oil is still under pressure. In addition to the weak demand caused by the corona, the ongoing discussions in the US Congress about another economic stimulus package put a strain on it. One barrel of Brent Crude Oil lost its price 3.8 percent to $ 39.4, testing an important support level.

Company in focus

The past week showed a mixed picture for the individual values. So benefited Infineon from a forecast increase from STMicroelectronics and improved by double digits. Bayer on the other hand, after a profit warning dived in double digits. Siemens Energy went public at the beginning of the week and fluctuated between EUR 20 and EUR 23.50 over the course of the week. The share of the parent company, Siemens, even marked a new annual high in the first half of the week. Car values ​​attracted entry after good sales figures from China. BMW and Daimler improved by over four percent compared to the previous week. In the second row, the shares of Fuchs Petrolub and Rational stood out. Fuchs Petrolub’s planned acquisition in Italy met with a positive response from investors.

The Association of German Machine and Plant Builders will publish figures on incoming orders next week. Of the Solactive German mechanical engineering index recently showed a good development. There will also be a high-level conference on hydrogen in Berlin. This means that titles from the Global Hydrogen Index come into focus next week.

Important appointments

  • China – Caixin PMI
  • Germany – Markit Services and Composite Purchasing Managers’ Index
  • Germany – incoming orders from industry
  • Germany – industrial production
  • Europe – Markit Services and Composite Purchasing Managers’ Index Euro Zone
  • Europe – Euro Zone Retail Sales
  • France – industrial production
  • USA – ISM purchasing managers index
  • USA – Trade Balance
  • USA – Minutes of the latest Fed meeting
  • USA – Initial Jobless Claims

Chart technical outlook

Resistance marks: 12,900 / 13,060 points

Support marks: 12,420 / 12,600 / 12,700 points

The DAX® at the end of the week with a gap down. By the end of trading, the downward gap was largely closed again. However, the short-term trend is downward. The index encounters a broad zone of resistance between 12,700 and 12,800 points. The earliest chance of a sustained upward movement is above 12,900 points. Until then, setbacks of up to 12,500 points must be expected.

DAX® in points; Hourly chart (1 candle = 1 hour)

Observation period: 15.09.2020 – 02.10.2020. 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 2nd, 2013 – October 1st, 2020. Historical considerations are not reliable indicators for future developments. Source: tradingdesk.onemarkets.de

Inline warrants on the DAX®

UnderlyingWKNSales price in eurosLower knock-out barrier in Pt.Upper knock-out barrier in pt.Final Valuation day
DAX®HR03H46.2911,80016,60011/19/2020
DAX®HR03N74.4212,00015,100December 17, 2020

Source: HypoVereinsbank onemarkets; Status: October 2nd, 2020; 5:35 pm

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The article Weekly Outlook: DAX is weak. Focus on leading indicators and key data for Q3! first appeared on onemarkets blog (HypoVereinsbank – UniCredit Bank AG).

Author: Richard Pfadenhauer

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