Markets

Weekly outlook: DAX with week-end sprint. ECB and data in focus!

Investors have had an eventful week. A week in which the expectations were high but not (yet) fulfilled. The number of newly infected people around the world continued to grow. The discussions do not end in the Brexit negotiations either, and the second US economic stimulus package long awaited by many investors has not yet been adopted. The uncertainty factors ensured that the majority of the equity barometers posted losses. Compared to the previous week, the DAX® fell 2.0 percent to 12,645 points and the EuroStoxx®50 1.6 percent to 3,190 points.

Expectations will not decrease in the coming week. On the contrary. The framework conditions remain the same. In addition, however, there is a flood of important economic data, the ECB interest rate decision and a mass of data from companies.

The uncertainty in the stock market was reflected in the bond market over the past week. Many investors switched parts of the portfolio (temporarily) from riskier to safe investments. The yield on 10-year Bunds rose by five points to -0.566 percent and the yield on comparable US bonds by ten points to 0.85 percent. The precious metals showed some major swings over the course of the week. At the close of trading on Friday, however, they were back in the range of the previous week. Only platinum was able to post a weekly plus of almost six percent to 910 US dollars. Since the second week of September, the price of a barrel of Brent Crude Oil has been hovering in a range between 39 and 43.30 US dollars – this was also the case last week. There are currently no signs of an outbreak.

Company in focus

In the past week only six stocks in the DAX® posted gains. The remaining 24 suffered losses of up to 12 percent. Corona losers like the two car stocks were particularly popular BMW and VW as MTU Aero Engines. At the end of the performance list, the corona winners like Delivery Hero and SAP. A comparable picture was presented in the second row. The shares of German Lufthansa and Fraport rose in double digits while the shares of HelloFresh and Teamviewer each lost over ten percent compared to the previous week.

From Europe report next week among other things Airbus, Aixtron, BASF, Beiersdorf, Carrefour, Covestro, Delivery Hero, Deutsche Börse, Deutsche Bank, Deutsche Lufthansa, Drägerwerk, FiatChrysler, Fresenius, MTU Aero Engines, Nokia, Novartis, PSA Group, Puma, Rational, SAP, Siltronic, Spotify, Total, VW and Wacker Chemie Business figures for the past quarter. In the US stand among other things Alphabet, Amazon, AMD, Amgen, Apple, Boeing, eBay, ExxonMobil, Facebook, General Electric, Microsoft, Pfizer and Twitter focus on your business figures.

Important appointments

  • Germany – labor market data
  • Germany – GDP, Q3 first estimate
  • Europe – ECB interest rate decision
  • Europe – Euro zone consumer prices
  • Europe – Eurozone GDP, Q3 first estimate
  • France – labor market data
  • France – consumer confidence
  • France – GDP, Q3 first estimate
  • France – consumer prices
  • United States – Durable Goods Orders
  • USA – Consumer Confidence
  • US – GDP, Q3, first estimate
  • USA – Initial Jobless Claims
  • USA – consumer price index
  • USA – purchasing managers index
  • USA – Uni Michigan Consumer Confidence

Chart technical outlook

Resistance marks: 12,670 / 12,800 points

Support marks: 12,360 / 12,460 / 12,520 / 12,610 points

In late trading, the DAX® can distance itself from the support level at 12,600 points. The day’s high, however, was 100 points higher. The 12,700 point mark should be decisive at the beginning of the week. If the breakout succeeds above this level, there is a chance of a breakout from the short-term downward trend and a recovery to 12,800 points. Until then, however, setbacks of up to 12,460 points must be expected.

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

Observation period: 24.09.2020 – 23.10.2020. 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 24, 2013 – October 23, 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®HR1JQ44.8011,20014,00001/21/2021
DAX®HR03N75.6912,00015,100December 17, 2020

Source: HypoVereinsbank onemarkets; Status: October 23, 2020; 5:44 pm

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Please note the important information and the disclaimer.

This information does not constitute investment advice, but advertising. The public offer is made exclusively on the basis of a securities prospectus approved by the Federal Financial Supervisory Authority (“BaFin”). Approval of the prospectus should not be understood as a recommendation to purchase these UniCredit Bank AG securities. The prospectus including any supplements is decisive and the Final Terms. It is recommended that you read these documents carefully before making any investment decision in order to fully understand the potential risks and opportunities when making an investment decision. You are about to acquire a product that is not easy and can be difficult to understand.

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