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DAX index grows from 30 to 40 stocks

When everything seems to be going against you, remember that the airplane takes off against the wind, not with it. – Henry Ford

 

 

HEADLINES

 

 

  • Germany’s DAX index to conclude ‘biggest reform’ in its 33-year history
  • Dollar dips as soft U.S. inflation weighs; Fed in focus next week
  • Pound To Euro Fluctuates On UK Inflation Rise
  • Oil prices end at highest since July as U.S. crude supplies fall a 6th-straight week
  • S&P 500, Dow gain on factory data, strong oil prices
  • Bitcoin and DeFi Coins Rally, Ethereum Alternatives Drop as Solana’s Outage Triggers Sector Rotation

 

 

SPECIAL UPDATE: The DAX index

 

 

Germany’s DAX index to conclude ‘biggest reform’ in its 33-year history

 

The main German index will increase in size from 30 to 40 constituents.

Germany’s DAX index will absorb the ten largest companies from the MDAX benchmark, which will shrink from 60 to 50 constituents

The Deutsche Boerse’s Qontigo, via its indexing arm STOXX, announced the companies to be added to the German large-cap index will be Airbus, Zalando, Siemens Healthineers, Symrise, HelloFresh, Sartorius, Porsche Automobil, Brenntag, Puma and Qiagen.

The constituent reshuffle comes as part of a raft of changes… alongside other reforms, including a tightening of corporate governance rules on the back of the accounting misconduct of former DAX constituent Wirecard.

The Dax was founded in 1988. Since then it has delivered a total return averaging 8.6% annually. The expansion reflects a concern that the index had become overly weighted towards old economy industries such as carmakers, banks and industrial groups. By offering a broader selection of companies, a bigger Dax should give investors a more accurate cross-section of the German economy.

Qontigo said the final batch of changes will be implemented on 20 September and will represent the “biggest reform in the benchmark’s +30-year history”. 

 

 

FOREX

 

 

Dollar dips as soft U.S. inflation weighs; Fed in focus next week

 

The dollar slipped against major currencies on Wednesday after softer-than-expected U.S. inflation data released on Tuesday eased short-term expectations about tapering of asset purchases from the Federal Reserve. Wednesday’s data showed Britain’s inflation rate hit its highest in almost a decade last month after a record jump that was largely fuelled by a rebound in restaurant prices.

 

Pound To Euro Fluctuates On UK Inflation Rise

 

The Pound climbed against most of its peers this morning, despite struggling to gain traction against the Euro. Sterling enjoyed tailwinds as UK inflation data for the month of August printed 0.3% above forecasts- the highest annual inflation has been since March. CPI also printed above forecasts at 3.1%: the highest figure since November 2011.

 

 

COMMODITIES

 

 

Oil prices end at highest since July as U.S. crude supplies fall a 6th-straight week

 

Oil futures climbed on Wednesday to their highest settlement since late July, after U.S. government data showed a more than six million-barrel weekly drop in domestic crude supplies, marking a sixth-consecutive weekly decline. The Energy Information Administration reported on Wednesday that U.S. crude inventories fell by 6.4 million barrels for the week ended Sept. 10. That marked a sixth weekly decline in a row. The drawdown was larger than the average decline of 3.5 million barrels expected by analysts polled by S&P Global Platts forecast.

 

 

STOCKS

 

 

S&P 500, Dow gain on factory data, strong oil prices

 

The S&P 500 and Dow Jones indexes rose on Wednesday on mildly positive factory data and higher oil prices, although concerns over a slowing economic recovery and higher corporate taxes kept sentiment subdued. The energy sector climbed 3.1% to lead a rise in economically sensitive sectors as oil prices gained on a larger-than-expected drawdown in U.S. crude inventories.

 

 

CRYPTO

 

 

Bitcoin and DeFi Coins Rally, Ethereum Alternatives Drop as Solana’s Outage Triggers Sector Rotation

 

The crypto market is witnessing a classic sector rotation in the wake of programmable blockchain Solana’s outage. For the first time in several weeks, such decentralized finance (DeFi) tokens as AAVE, chainlink a and UNI are leading bitcoin and the broader market higher with double-digit percentage gains on a 24-hour basis. Meanwhile, native tokens of the so-called Ethereum alternatives like Algorand, Avalanche, Cosmos and Solana are nursing 5-7% losses, according to data source Messari.

 

 

CHART

 

 

DAX 30 Index – Daily Candlesticks

Source: GKFX Prime Metatrader 4

DAX30 is testing a rising trendline that has been in place since December 2020. There is further support from what could be a rising channel but the major trend break increases the chance of a re-test of the 200 DMA - Prepared by Trading Writers*

 

 

CALENDAR

 

 

*Times in GMT

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Source: FX Street Economic Calendar

 

 

SOURCE

 

 

https://www.fxstreet.com/economic-calendar
https://www.etfstream.com/news/germany-s-dax-index-to-conclude-biggest-reform-in-its-33-year-history/
https://moneyweek.com/investments/stockmarkets/european-stockmarkets/603815/change-is-coming-to-the-german-stockmarket-as
https://www.reuters.com/business/futures-tick-higher-tax-uncertainty-weak-recovery-weigh-2021-09-15/
https://www.exchangerates.org.uk/news/33962/2021-09-15-gbpeur-pound-to-euro-exchange-rate-fluctuates-on-uk-inflation-rise.html
https://www.coindesk.com/markets/2021/09/15/bitcoin-and-defi-coins-rally-ethereum-alternatives-drop-as-solanas-outage-triggers-sector-rotation/
https://www.marketwatch.com/story/oil-extends-rise-as-industry-data-shows-another-drawdown-in-crude-inventories-11631706726