Yesterday’s session was in shadow of FOMC decision but it didn’t stopped bulls on most of European stocks. All German indices gained: DAX +1.31%, MDAX +1.32%, SDAX +0.82%, TECDAX +1.55%. 22 outs of 30 DAX companies appreciated. The biggest gains were on Volkswagen despite quarterly results worse than expectations. Reaction of investors for Frank Witter’s words was positive. He ensured that company has solid liquidity assets which will help in current situation. Volkswagen +3.99%, Vonovia +2.73%, ThyssenKrupp +2.43%, Merck +2.21%.
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After FED decision (rates unchanged) EURUSD lost over 1% of value breaking support at 1.1100. FED was very hawkish because they are no more afraid of global situation. There was also statement that FED will consider rates hike during December meeting and that inflation will reach 2% in the medium term.
DAX FUTURE reached 10,905 pts in the end of day. Test of 11,000 pts is just a matter of time and what will happen next depends on American indices and EURUSD.
Like every Wednesday there was data published about sentiment of investors on DAX:
- institutional: bulls – 61%, bears – 24%, neutral – 15%
- private: bulls – 60%, bears – 22%, neutral – 18%
Sentiment is almost the same. Most of investors expect growth what is another proof for scenario that on DAX new bullish wave didn’t started yet and now we are in huge correction.
