Bull and Bear in front of the German Stock Exchange in Frankfurt am Main
Photo:Rupert Oberhäuser / imago images
The Dax could venture out of its latest comfort zone on Tuesday. The broker IG valued the leading index two hours before the Xetra kick-off at 12,802 points, which is an increase of 0.9 percent. This would make another attempt to break the sideways range of the past few days on the upside. The range from 12,750 to 12,800 points had recently repeatedly proven to be a high hurdle.
On Tuesday, the positive requirements from overseas will serve as a support. In New York, the Dow Jones - unlike the Nasdaq indices, which have recently avoided technology stocks - expanded its profits the previous evening. The good mood then spilled over to Asia and now probably also to Europe.
According to market observer Stephen Innes from the broker Axitrader, investors are betting that the parties to the dispute in the USA will return to the negotiating table for new talks about further relief measures in the corona crisis, after US President Donald Trump simply ordered the new stimulus package on Sunday .
In Germany, the company reports increased again on Tuesday, including quarterly figures from HelloFresh, Aurubis, Zalando and Deutz. The ZEW economic expectations published in the morning could also be worth a look in this country.
Japanese stock exchange gains significantly after a long weekend
The Japanese stock markets came on Tuesday with clear gains from the holiday-related long weekend. The Nikkei index, which comprises 225 values, rose by 1.59 percent to 22,686 points. The broader Topix index even rose by 1.98 percent. It was the biggest increase in a week. The speculations on an agreement on further corona aid in the USA support the courses.
Dow at its highest level since late February
The US leading index, the Dow, regained its highest level in just over five months on Monday. Shortly after the start of trading, the Wall Street Index left its early June high behind and climbed towards 28,000 points. Support for Wall Street came from the prospect of expected further aid to the troubled US economy.
At the close of trading, the Dow Jones was up 1.30 percent to 27,791.44 points, its highest level since February 25. A few days before this date, the coronavirus panic had hit the stock exchanges and sent them into a steep decline by mid-March. The market-wide S&P 500 advanced 0.27 percent to 3360.47 points on Monday, while the Nasdaq 100 fell 0.49 percent to 11085.17 points. The technology-heavy Nasdaq selection index had only reached a new record high on Thursday.
On Sunday, US President Donald Trump simply ordered the new Corona economic stimulus package because negotiations between Republicans and Democrats in Congress had failed. Trump promised much-needed aid, including more money for millions of unemployed. Critics, however, complain that the US Congress has yet to approve these measures. The increasing tensions between the US and China in the dispute over the restriction of Hong Kong's autonomy have been largely ignored.
Euro exchange rate hardly changed
The euro has not continued the losses of the past trading days for the time being. The common currency was trading at $ 1.1752 on Tuesday morning, slightly higher than on Monday evening. The European Central Bank (ECB) last set the reference rate on Monday afternoon at 1.1763 (Friday: 1.1817) dollars.
Recently, a dollar strength had weighed on the euro. Better than expected data from the US labor market and the decision of US President Donald Trump to extend existing relief measures in the corona crisis by decree provided a boost for the US currency.
In the morning, market observers spoke of a rather low-momentum trade. There is only a few important economic data on the program during the course of the day for investors to orientate themselves on.
Oil prices continue to rise
Oil prices rose a little on Tuesday, building on the slight gains from the previous day. In the morning, a barrel (159 liters) of North Sea Brent cost 45.19 US dollars. That was 20 cents more than the day before. The price of a barrel of US West Texas Intermediate (WTI) oil rose 32 cents to $ 42.26.
On the market, the rise in oil prices was further explained by a higher demand forecast by the Saudi Arabian oil company Saudi Aramco and the recent development of the corona pandemic in the USA. Most recently, the number of new infections in important US states fell again.
In addition, oil prices were also supported by a comparatively low dollar exchange rate. Although the dollar has been able to recover somewhat since the beginning of the week, it had lost significant value in the past week. Since crude oil is traded in dollars on the world market, a weakness in the exchange rate of the American currency makes the raw material cheaper outside the dollar area and thus strengthens demand.
mg / dpa-afx / Reuters
