Markets

Weekly outlook: DAX gets a damper. Balance sheets at a glance!

The nervousness among investors is increasing. The corona-related restrictions, ambiguities with a view to Brexit and the US election in the coming week are currently raising many question marks. Too many for many investors at the moment. Some of the investments were shifted from riskier to safe investments. In the course of the week, the DAX® lost around 8.6 percent or 1,100 points to 11,560 points and the EuroStoxx®50 7.3 percent to 2,965 points. Elections will be held in the USA next week. In addition, the US Federal Reserve meeting is due.

In the past week, safe investments were very popular with investors. The yield on 10-year Bunds then lost four points to -0.62 percent. The US bond market was very volatile. At the end of the week, the yield on 10-year government bonds was around 0.85 percent and thus little changed compared to the previous week. The precious metals could not escape the capricious prices on the stock market and in some cases came under significant pressure. At the end of the week, the gold price rose in the range of $ 1,880 per troy ounce and silver at $ 23.50. The price of a barrel of Brent Crude Oil fell by over ten percent compared to the previous week to its lowest level since June 2020.

In the past week, stocks almost without exception suffered. In the DAX® only Delivery Hero was able to post a price increase compared to the previous week thanks to good quarterly figures. Eight DAX® stocks even suffered double-digit losses. After a revision of the forecasts, the SAP share lost more than a quarter of its value and closed on a weekly closing price basis at the lowest level since the end of March 2020. A similar picture emerges with the Beiersdorf share. At the end of the week, stocks like BASF and VW reached important support levels. Should they fall short, a new wave of sales could start. In the MDAX®, only Nemetschek and Varta posted price gains over the course of the week. The remaining index members lost up to 16.5 percent of their value. In the next week, a series of data from Europe awaits investors.

From Europe report next week among other things Allianz, ArcelorMittal, AstraZeneca, Bayer, BMW, BNP Paribas, Brenntag, Commerzbank, Evonik, Ferrari, Fraport, Fuchs Petrolub, GEA Group, Hannover Re., HeidelbergCement, HelloFresh, Hugo Boss, Klöckner, Lanxess, Munich Re., Pfeiffer Vacuum , ProSiebenSat.1, Ryanair, Siemens Healthineers, Société Générale, Vonovia and Zalando Business figures for the past quarter. In the USA report among other things PayPal and About. In addition, figures for new car registrations are reported from the USA and the Association of German mechanical and plant engineering companies publishes figures on incoming orders.

Important appointments

The focus of investors is on the US. There is the election of the US President!

  • China – Caixin PMI Industry for China, October
  • Germany – Markit / BME purchasing managers’ index for German industry, October
  • Germany – incoming orders from industry, September
  • Germany – industrial production, September
  • Europe – Markit Industrial Purchasing Managers’ Index for the euro zone, October
  • USA – ISM Industrial Purchasing Managers Index, October
  • USA – Industrial orders, September
  • USA – ADP Labor Market Report, October
  • USA trade balance, September
  • USA – Federal Reserve Meeting
  • United States – Initial jobless claims for the week ended October 31
  • USA Labor Market Report, October

Chart technical outlook

Resistance marks: 11,700 / 11,900 / 12,265 points

Support marks: 11,260 / 11,380 points

At the end of the week, the DAX® stabilized in the area of ​​11,500 points. The share index is currently supported at 11,380 points. There is strong resistance at 11,700 points on the top. In the coming week there will be numerous impulses for the stock market. If the breakout succeeds above 11,700 points, there is a chance of a rapid recovery to 11,900 points. However, if the index tips below 11,390 points, another sell-off threatens.

DAX® in points; 4-hour chart (1 candle = 4 hours)

Observation period: July 28, 2020 – October 29, 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 29, 2013 – October 29, 2020. Historical considerations are not reliable indicators for future developments. Source: tradingdesk.onemarkets.de

You can find leverage products for speculation on an upward or downward movement or sideways movement of the DAX® here.

Call warrants on DAX® Index for speculation on an increase in the index

Underlying WKN Selling price in EUR Base price / knock-out in pts. omega last valuation day
DAX® index HR1W87 4.24 11,600 13.2 December 01, 2020
DAX® index HR1W8F 2.37 12,000 16.8 December 01, 2020
Source: HypoVereinsbank onemarkets; 10/30/2020; 5:54 p.m.

Put warrants on DAX® Index for speculation on a price loss of the index

Underlying WKN Selling price in EUR Base price / knock-out in pts. omega last valuation day
DAX® index HR1WAH 4.46 11,500 12.4 December 01, 2020
DAX® index HR1WAB 3.40 11,200 13.0 December 01, 2020

Source: HypoVereinsbank onemarkets; 10/30/2020; 5:55 pm

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