0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Bearish
Oil - US Crude
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
Bullish
Gold
Bearish
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • Commodities Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Silver: 5.25% Gold: 0.99% Oil - US Crude: 0.33% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/gpka4HBCay
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.03%, while traders in US 500 are at opposite extremes with 76.79%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/FfFR6kxBCO
  • Ahead of the RBNZ rate decision next week, the New Zealand Dollar has struggled to climb higher against its major counterparts, with the exception of the US Dollar. Get your market update from @JMcQueenFX here:https://t.co/iZxV2qSVrw https://t.co/CGE3WeJ3Yl
  • U.S. State Department lifts travel advisory for all international travel - BBG
  • Indices Update: As of 18:00, these are your best and worst performers based on the London trading schedule: US 500: 0.21% Wall Street: 0.20% France 40: 0.10% Germany 30: 0.06% FTSE 100: 0.03% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/uCGMUoQfxx
  • Senator Collins 'still optimistic' on stimulus deal - BBG
  • Update on #Cryptocurrencies #BITCOIN +1.33% #BITCOINCASH +5.60% #ETHEREUM -0.07% #RIPPLE +1.08% #LITECOIN +1.63%
  • https://t.co/A8Ywz4dGqr
  • Emerging Markets: Volatility is rife within the EM complex following the heavy selling in the Turkish Lira, having blown past the 7.0000 handle. Get your $XAG market update from @JMcQueenFX here: https://t.co/SIfXngFsR8 https://t.co/uDh1sdNfkn
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.13%, while traders in US 500 are at opposite extremes with 76.27%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/E6VnriWgve
DAX Outlook: Beware of Auto Tariff Threat - EU/US Trade War

DAX Outlook: Beware of Auto Tariff Threat - EU/US Trade War

2019-05-01 08:00:00
Justin McQueen, Analyst
Share:

Equity Analysis and News

  • DAX Outperforms Peers in April
  • Focus on Threat of Auto Tariffs – EU/US Trade War
  • DAX 1-Month Implied move +/- 2.6%
DAX Outlook: Beware of Auto Tariff Threat - EU/US Trade War

Source: Thomson Reuters, DailyFX

DAX Outperforms Peers in April

The DAX has been the notable outperformer throughout April with the index gaining over 7%, outpacing its European peers by quite some margin, which is despite the soft data from Germany. Much of the outperformance had stemmed from the sizeable exposure that the DAX has in the auto and tech sector. Most notably stemming from SAP (largest weighted stock in the DAX at 10%) who saw its shares surge by the most in over a decade after activist investor disclosed a $1.3bln stake in the company.

Euro Drops to a Near 2yr Low

Another supportive factor behind the gains observed in the DAX had been the downside breakout in Euro, which saw the currency drop to a near 2yr low. Consequently, this provided an added boost to German exporters (auto sector), while the increased optimism that China the US could seen agree a trade deal had also helped risk appetite.

Focus on Threat of Auto Tariffs – EU/US Trade War

On February 17th, the Department of Commerce had submitted its report in regard to the potential security threat of auto imports, in which President Trump has until May 18th to announce what, if any action he will take. This means that Trump has until May 18th to decide whether he agrees that auto imports pose a national security threat, with an added 15 days to implement any action. Although, if the President chooses to begin negotiations, he will have another 180 days before he can decide whether to take other actions. As such, a step up in rhetoric will be particularly important for Volkswagen, BMW, and Daimler.

  • Risk of auto tariff to begin with rate of 10% (potentially rising to 25%)

1-Month implied move: The expected move in the DAX for May is a +/- 2.6% swing.

DAX Price Chart: Daily Time Frame (Nov 2017 – May 2019)

DAX Outlook: Beware of Auto Tariff Threat - EU/US Trade War

RESOURCES FOR FOREX & CFD TRADERS

Whether you are a new or experienced trader, we have several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.

--- Written by Justin McQueen, Market Analyst

To contact Justin, email him at Justin.mcqueen@ig.com

Follow Justin on Twitter @JMcQueenFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.