DE30: DAX on new all-time highs


Stock markets advance amid optimism concerning corporate earnings  
DAX (DE30 on xStation5) reaches new all-time highs  
Vonovia (VNA.DE) under pressure after downgrade from Credit Suisse  
US stock indices reached new all-time highs following solid earnings posted by companies and the end of government shutdown. Asian equities rose amid optimism in the US as well as BoJ Governor Kuroda remarks. In Europe DAX opened higher reaching an all-time highs.
DE30 opened higher resulting in a new all-time highs.

Looking at the DE30 chart we can see that the benchmark opened above 13530 pts handle today. This level was marked by the peak from the 2017 which was also a historic high for this index. As of now DE30 is trading at its highest levels ever. In case we will lack a negative or unexpected news benchmark could move steadily higher towards upper limit of the price channel. The aim for the bears might be bringing price down below the level of last year’s peak. If they succeed a further decline may be limited by local support levels marked by 8- and 21-session moving averages.

Benchmarks from Wall Street reached another new all-time highs yesterday amid optimism concerning corporate earnings. Netflix stole the show yesterday as it posted better than expected revenues sending company’s market capitalization above $100 billion for the first time ever. Apart from that it is worth mentioning that the Congress passed short-term funding deal ending government shutdown. Asian benchmarks rose amid optimism seen in the US. The top gainers were stocks from Japan as the BoJ decided to keep current monetary policy. Moreover, Governor Kuroda played down speculation that the central bankers are moving closer to reducing monetary stimulus. China’s Hang Seng CE (CHNComp) gained , Japan’s Nikkei (JAP225) advanced 1.29%, whilst Australia’s S&P/ASX 200 (AUS200) traded 0.75% higher.

In Europe stock markets opened higher amid optimism seen on the US and Asian equities. European benchmarks are lead by gains of companies that posted better than expected earnings like Logitech or EasyJet. Apart from that, EU Finance Ministers will meet today to discuss further development of the economic and monetary union and the implementation of an action plan on banking sector’s non-performing loans. Moreover, they are also expected to agree on conclusions of the European Commission’s annual growth survey. Furthermore, Finance Ministers are going to approve a draft recommendation on the economic policies of the Eurozone. After the first hour of trade the German DAX (DE30) has traded 0.9% higher, whilst the French CAC 40 (FRA40) and UK FTSE 100 (UK100) have lagged behind gaining 0.11% and 0.13% respectively.
Vonovia (VNA.DE) is the sole underperformer from the DAX index today.

Company News

Vonovia (VNA.DE) is underperforming against its peers from the DAX index. As a reason we can point a downgrade company received from Credit Suisse. Bank revised its recommendation for housing company from “neutral” to “underperform”. New price target has been set at 41 euros, implying 0.2% increase from the yesterday’s close. After the first hour of trade Vonovia shares traded 0.6% lower.