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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Daily Summary: DAX pulls back after reaching fresh record high

15:58 22 January 2020
  • DAX, Nasdaq and S&P 500 paint fresh record highs
  • CAD plunges after BoC decision
  • OIL trades under pressure on demand concerns

Sentiment on the global stock markets has greatly improved since yesterday after Chinese authorities outlined how they aim to tackle spreading of deadly coronavirus. Stocks in Asia booked solid gains today with HSCEI (CHNComp) jumping over 1.8%. Equity indices from the Western Europe also saw a strong opening with DAX (DE30) surpassing record high from January 2018. However, those gains were later erased and European indices traded under pressure until the opening of Wall Street session. US indices played down virus outbreak concerns and surged to fresh record highs at the opening. European benchmarks followed suit and started to recover.

DE30 reached new ATH at 13635 pts at the beginning of today’s session but failed to hold onto these gains. The German index pulled back to the support at 13530 pts. Source: xStation5

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There was little action at the World Economic Forum in Davos today. Donald Trump once again attacked the Fed for mismanagement of interest rates, while other US officials hailed the trade deal with China. One point of note was Trump’s comments on EU car tariffs - the US President said that he has a date on his mind when such tariffs could be introduced and that “it is a fairly quick date”.

Tesla (TSLA.US) once again gathers attention. The electric car manufacturer continues to surge and has surpassed market capitalization of $100 billion at the opening of today’s session. The US carmaker is now bigger than any German automotive stock.

GBP is the top performing G10 currency today thanks to a major improvement in soft indicators, especially business optimism. Market odds for the BoE rate cut next week slipped below 50%. On the other side of the table we have today’s G10 top laggard - CAD. Canadian dollar plunged following the Bank of Canada decision. While the Bank left rates unchanged as expected, it has hit a more cautious tone and lowered growth forecast for the first quarter of 2020.

Oil is one of the assets that failed to look past coronavirus concerns today. Crude price declines after some major banks hinted that virus outbreak may limit interest in plane travel and, in turn, hit demand for oil. Brent (OIL) and WTI (OIL.WTI) trade around 2% lower on the day.

This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.

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