Porsche under pressure, DAX rising
Important news for the day
- Tue, 23rd, 09:30 CET DE PMI data.
- Tue, 23rd, 10:30 CET UK PMI data.
- Tue, 23rd, 15:45 CET US PMI data.
Car manufacturing
German car manufacturers might face tougher times as prices of Porsche and Volkswagen continue to tumble. Also prices of companies like Continental automotive keep losing steam. Issues of the transition between combustion engines and electric vehicles seems the biggest burden. Porsche pointed out that they will continue to build cars with petrol engines as well as Hybrid motorization. Meanwhile they issued a profit warning and hence investors sold their stocks. Traders looking to enter the market might get stocks at a discount for now, yet it remains unclear whether the business models are set to improve anytime soon.
Market talk
US equities continue to trade higher seemingly under the influence of the rate cut by the FED last week. Even the stronger Dollar does not cause any impact for now. Also the German DAX started to resume upside momentum and might also push higher. Precious metals continue to march higher and might offer some information about the risk sentiment. Rising Gold prices would rather cause investors to remain cautious, especially currently where also the stronger Dollar should pull prices to the downside. Oil prices keep rising as well. USOIL bounced off the important support zone and might continue to move higher under the influence of the growing economic demand.
Tendencies in the markets
- Equities positive, USD sideways, BTC sideways, ETH sideways, oil positive, Silver positive, Gold positive, JPY weaker.
Author
Frank Walbaum
FX Strategies.Asia
Frank has been working in the TV business for several years. Acquiring his skills in Germany’s biggest broadcasting station, he then chose to work and live in Asia, which was in 2007.
