The stock markets were extremely volatile in the second half of the week. The increasing number of newly infected people fueled fears of greater restrictions in some countries. Good company data for the past quarter motivated the bulls to use setbacks to get started. The DAX® closed around one percent lighter at 12,910 points and the EuroStoxx®50 0.7 percent lower at 3,250 points. The reporting season will get going in the next week. In addition, numerous economic data are pending publication.
Yields on the bond market fell significantly over the course of the week. The yield on 10-year Bunds fell by 8 points to -0.627 percent. The yield on comparable US papers lost four points to 0.74 percent. Most of the precious metals fluctuated in one range. The price of gold closed in the range of $ 1,900 per troy ounce and silver above $ 24 on Friday. Meanwhile, the price of a barrel of Brent Crude Oil fluctuated in the sideways trend that had been in place since the beginning of September between 39 and 43.50 US dollars – but closed at the upper end of the range.
Company in focus
The price development in the DAX® was very mixed. The shares of Beiersdorf, Daimler and Delivery Hero went against the trend and improved by up to five percent compared to the previous week. Health stocks like Fresenius, Bayer and Merck however, had to give up and lost up to six percent. In the second row, it was above all the Internet service providers who could HelloFresh, shop pharmacy and Zooplus as Teamviewer grow strongly.
The reporting season will get going next week. From Europe, Adva Optical, Daimler, Danone, Kering, L’Oreal, Michelin, Nestlé, Pernod Riccard, Philips Sartorius, Software AG, Unilever and Vivendi Business figures for the past quarter. In the US stand among other things Biogen, IBM, Netflix, Procter & Gamble, Tesla and Texas Instruments and their business figures in focus. The Hannover Re also invites you to the investor day.
- China – industrial production
- China – GDP, Q3
- Germany – GRP consumer climate
- Germany – Markit Purchasing Managers Index
- Europe – Eurozone Consumer Confidence
- Europe – Markit purchasing managers’ index for the euro zone
- France – business climate
- USA – Housing starts
- USA – Fed publishes Beige Book
- USA – Uni Michigan Consumer Confidence, October
Chart technical outlook
Resistance marks: 12,980 / 13,060 / 13,165 points
Support marks: 12,630 / 12,730 / 12,800 points
The DAX® showed a strong rebound at the end of the week. However, he couldn’t quite make up for the previous day’s losses. The share index is currently supported in the area of 12,800 points. Setbacks up to that point could see bulls again as a buying opportunity. On the upside, the index finds strong resistance at 13.060 / 13.165. However, if the index dips below 12,800 points, caution is advised and a renewed consolidation to 12,500 points can be expected.
DAX® in points; Hourly chart (1 candle = 1 hour)
Observation period: 29.09.2020 – 16.10.2020. 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 17, 2013 – October 16, 2020. Historical considerations are not reliable indicators for future developments. Source: tradingdesk.onemarkets.de
Inline warrants on the DAX®
|Underlying||WKN||Selling price in euros||Lower knock-out barrier in Pt.||Upper knock-out barrier in pt.||Final Valuation day|
|DAX®||HR03N7||6.91||12,000||15,100||December 17, 2020|
Source: HypoVereinsbank onemarkets; Status: October 16, 2020; 5:45 pm
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The article weekly outlook: DAX with strong rebound. Balance sheets at a glance! first appeared on onemarkets blog (HypoVereinsbank – UniCredit Bank AG).
Author: Richard Pfadenhauer