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Frankfurt – 20/09/2019
The usual tensions on Triple Witching Day
Today is Triple Witching Day, which is the big expiration day when the expiration of stock index futures, stock index options and stock options occurs on the same day. It takes place four times a year – always on the third Friday of March, June, September and December.
After the recent central bank rally on the stock markets, the air seems to be out for now. But the bulls still seem to be in control.
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Though the hope for a looser monetary policy as a buying argument has disappeared for the time being, now that the interest rate cuts by the central banks ECB and Fed are a “fait accompli”. But the overriding prospects for the equity markets remain positive.
USA Markets at a glance
Wall Street does not provide any strong impetus for trade in Europe this morning. The day after the Fed’s interest rate decision, the Dow Jones Index closed 0.2 per cent lower at 27,094 points. The broader S&P 500 index was stagnant at 3,006 points. The Nasdaq technology exchange index improved by 0.1 per cent to 8,182 points.
On Friday morning, US futures made some gains. The future on the Dow Jones is 0.1 per cent higher.
Far East Markets at a glance
The stock markets in the Far East are friendly on Friday.
In Japan, the leading index Nikkei is 0.07 per cent higher at 22,059.91 points around.
In China, the Shanghai Composite can meanwhile climb 0.36 per cent to 3,010.20 points. In Hong Kong, the Hang Seng recorded a plus of 0.11 per cent to 26,498.68 units.
The small interest rate cut by the Chinese central bank and talks between the USA and China are supporting the stock markets in the Far East a little before the weekend. The market had already expected the PBoC interest rate hike. It was the second rate cut in a row.
European Markets at a glance
The European stock exchanges are starting Friday with restraint. The EuroSTOXX 50 starts about 0.2 per cent lower than the day before. In Germany, the Dax also started slightly in the red at 12,433.90 points.
Before the weekend, the Triple Witches Day could cause wild swings in the markets. At noon the futures on the indices and options on them expire, in the evening the options on individual stocks follow.
Forex, gold, oil and crypto
In the foreign exchange market, the euro is making some gains and is currently rising to 1.1059 dollars.
Oil prices continue to rise in the commodity markets. On Thursday, the Brent variety from the North Sea rose by 1.6 per cent to 64.59 dollars per barrel. Experts speak of the aftermath of the attacks on Saudi Arabian oil production facilities over the weekend.
The price of gold is also rising. Currently, the troy ounce of gold is 0.3 per cent higher at 1,504 dollars.
The cryptocurrency market is largely unchanged today. Bitcoin was able to increase slightly and move back over the $10,000 mark. The top altcoins Ethereum and XRP haven’t changed much – one Ethereum costs around $218 and one XRP almost $0.30.
Corporate and world news
Thomas Cook in dangerous waters
According to insiders, the oldest tourism company in the world is encountering difficulties with its financial restructuring. The crisis-ridden travel company was confronted at the last minute with the Royal Bank of Scotland’s demand for secured funds in excess of an already negotiated £900 million rescue package, said one negotiator.
Airbnb IPO only in 2020
Apartment broker Airbnb continues to play for time in its planned IPO. The company announced on Thursday that it was not expecting a share premiere until next year. The mega project is thus increasingly developing into a hanging game.
Wall Street has long been eagerly awaiting the stock market premiere of the San Francisco-based company, which since its founding in 2008 has developed from a small online dormitory exchange into a tourism heavyweight and major rival of the hotel industry.
According to a report in the US magazine “Bloomberg Businessweek”, Airbnb has yet to close some legal construction sites in New York before going public.
Cautious optimism about Brexit
A gentle tailwind for the courses in Europe comes from the island for a change. One day before new Brexit talks, Brussels and London seem to be cautiously optimistic.
“I think we can reach an agreement,” EU Commission President Jean-Claude Juncker told Sky News on Thursday. But he doesn’t know whether the chances are more than 50 per cent.
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