Summary:

  • European equity market have opened flat following Trump’s speech in Indianapolis
  • German DAX (DE30 on xStation platform) still struggles with a key resistance
  • Daimler (DAI.DE) gains in the wake of a purchase of ride-sharing platform Flinc

Financial markets all around the world were little changed following a speech from the US President Donald Trump where he sketched out his proposals on a long-awaited tax reform. Even though it wasn’t a watershed as all of options had hung around markets for many months, it could be a turning point as the Trump’s administration faces mounting pressure to do something with the US tax system before the year’s end. Obviously, financial markets might become nervous, it hasn’t been the case thus far though.

link do file download linkAn hourly interval points to fading strength of bulls on the DE30, they might come back though. Source: xStation5

At first, let’s glance at an hourly chart which seems to suggest some obstacles bulls have already faced when they’ve striven to storm higher. A try to do so fizzled out yesterday as the price drew a shooting star. Nevertheless, one could not rule out that buyers will take a stab at doing it once again during today’s session. Having said that, should German inflation turns out to higher than estimated, it could be a drag on the DE30 due to a possible bump in the euro.

link do file download linkBuyers seem to be pushed to the wall and they have to break an upper limit of a channel to keep on growing. Source: xStation5

In turn, a daily time frame might suggest that Thursday’s session will be crucial. If bulls are capable of breaking an upper limit of a channel, it could result in a leg higher in the nearest future. On the other hand, once they fail to do so, a retreat towards 12600 points or a lower boundary of an ascending channel could be on the cards.

link do file download linkGerman lenders are on the rise once again as they benefit from rising yields. Source: Bloomberg

A scorecard of the Asian session shows that the Hang Seng (HKComp) proved to be the worst index losing as much as 1.5%. Unlike its offshore peer, the Shanghai Composite (CHNComp) slid just 0.2% while the Australian S&P/ASX 200 (AUS200) ticked up 0.1% and the Japanese NIKKEI (JAP225) grew 0.5%.

In Europe some signs of continence might be seen as moves have not been notable as of yet. Let’s recall that the Spanish IBEX marked an incredible session yesterday as it surged virtually 2% but optimism has been dispelled to some extent as the index is treading water right now. Keep in mind that risks surrounding the Catalan independence referendum (scheduled on Sunday) may weigh on the Spanish stock market as it’s still uncertain if the event takes place after all. Furthermore, the DE30 is moving up 0.2%, the French CAC40 (FRA40) is trading flat, the EuroStoxx50 is upping 0.1% while the FTSE100 (UK100) is trading lower 0.2% along with the pound which is losing momentum as well.

Company news

Firstly, it’s worth mentioning quite sweeping gains seen in Deutsche Bank (DBK.DE) which is already up more than 3% on the back surging the 10Y German yield which has managed to add up 10bps since the beginning of the week so far. Commerzbank (CBK.DE) is benefiting as well, gains are less impressive though.

Otherwise, Daimler (DAI.DE) is grinding a bit higher on the back of a report from the company. The firm proclaimed that it had bought German ride-sharing app Flinc which is a step of transition from being an automobile manufacturer to a mobility services provider.