Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

The DAX Gains As Euro Weakens

By London Capital Group (Ipek Ozkardeskaya)Market OverviewNov 11, 2015 06:34AM ET
www.investing.com/analysis/the-dax-gains-as-euro-weakens-271009
The DAX Gains As Euro Weakens
By London Capital Group (Ipek Ozkardeskaya)   |  Nov 11, 2015 06:34AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

The DAX opened upbeat in Frankfurt. Henkel and Adidas (DE:ADSGN) lead the early gains. Depreciation in euro against both the US dollar and the pound encourages demand in export-driven German stocks.

Henkel (DE:HNKG_p) beat earnings estimates in the 3Q, while printing a greater-than-expected fall in its sales from 4.695 billion to 4.590 billion euro. Nevertheless the company raised its profit target in 2015 on the back of a surprise jump in Persil sales in the emerging markets. Prospects for a cheaper euro is also convincing for expansion of activity in the US as there is business to be grasped from the Procter & Gamble (N:PG) presently dominating the North American market. Chinese market is still a leading potential for the business and despite the Chinese slowdown, the 6.5% growth in organic sales is reassuring.

Euro cheapens, pound recovers

The euro shortly slipped below 1.07 versus the US dollar in New York yesterday, Asia pulled the single currency higher as indication that demand in euro funding is settling back. Top sellers chase opportunities in euro-crosses however, as dovish ECB expectations for December and political issues in Portugal keep the sentiment comfortably negative vis- à-vis the euro.

The idea that the Fed is moving toward a rate hike by December could even bring the parity on the radar.

Cable recovered two-thirds of last week’s post-QIR losses, yet remains technically in the bearish trend. Given the Bank of England’s dovish shift in inflation and growth forecasts, the improvement in the labour market is expected to be insufficient to twist the presently developing bearish trend in Cable.

On the other hand, EUR/GBP still points to 0.70c mid-term target. The European Central Bank has been successful in managing the market activity so far. Prospects that the ECB will further loosen the monetary policy with the possibility of more QE and even deeper negative rates, keep traders away from building on their long euro positions.

The DAX Gains As Euro Weakens
 

Related Articles

The DAX Gains As Euro Weakens

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email