Europe To Open Higher As Chinese Data Boosts Mood

Positivity from Asia overnight is spilling into Europe, with stocks set to open on the front foot after the extended Easter weekend. Less gloomy than forecast Chinese trade data, in addition to more talk about exit strategies is lifting sentiment ahead of the start of the US earning season this afternoon.

Chinese trade data
Chinese exports fell -6.6% year on year in March, whilst imports slipped 0.9% in the same period. Analyst had expected a 14% fall in exports and a 9.5% decline in imports owing to the hit from the coronavirus lock down. However, the better than forecast figures have lifted optimism that the economic damage is not as bad as initially feared. China’s first quarter GDP release will be closely watched on Friday, the broad expectation is that Q1 GDP contracted -6% versus 6% growth in the final quarter of 2019.

US earnings
Today sees the start of US earning season. US banks and economy bellwethers will be kicking off the season. According to FactSet earnings from S&P 500 firms are expected to contract -10.2%, compared to gains of 6.3% expected in January. Last week, following the dismal US initial jobless claims data, the US stock market still managed its best week of gains since 1974. Investors will be watching closely to see whether the bad news has already been priced into the share price.

Germany to end lock down?
Pressure is growing on Angela Merkel to ease lock down measures and start to reopen the economy as the coronavirus daily death count drops to 176, putting the total at 2,799. The number of new cases was 2,2218, marking the fifth straight day of declines and the lowest increase this month. Angela Merkel, who has urged a cautious approach will give a videoconference tomorrow amid growing calls for a road map to normality.

There is no high impacting data due today. German inflation data is due to be released on Thursday. Chinese GDP on Friday will also be closely watch for clues as to how hard the world’s second largest economy was hit in the quarter of its covid -19 lock down

DAX levels to watch:
The Dax is set to open over 1% higher on Tuesday, as the index continues its recovery from its March 19th low.
Immediate resistance can be seen at 10796 (overnight high futures), prior to 11040 (10th March high) and 11530 (8th March high)
On the flip side support is seen at 10585 (trend line) prior to 10150 and 9335 (2nd April low).

From time to time, StoneX Financial Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.

FOREX.com is a trading name of StoneX Financial Pty Ltd.

The material provided herein is general in nature and does not take into account your objectives, financial situation or needs.

While every care has been taken in preparing this material, we do not provide any representation or warranty (express or implied) with respect to its completeness or accuracy. This is not an invitation or an offer to invest nor is it a recommendation to buy or sell investments.

StoneX recommends you to seek independent financial and legal advice before making any financial investment decision. Trading CFDs and FX on margin carries a higher level of risk, and may not be suitable for all investors. The possibility exists that you could lose more than your initial investment and CFD investors do not own or have any rights to the underlying assets.

It is important you consider our Financial Services Guide and Product Disclosure Statement (PDS) available at www.forex.com/en-au/terms-and-policies/, before deciding to acquire or hold our products. As a part of our market risk management, we may take the opposite side of your trade. Our Target Market Determination (TMD) is also available at www.forex.com/en-au/terms-and-policies/.

StoneX Financial Pty Ltd, Suite 42.01, 264 George Street, Sydney, NSW 2000 (ACN 141 774 727, AFSL 345646) is the CFD issuer and our products are traded off exchange.

Delayed London Stock Exchange (LSE) Data

The London Stock Exchange (LSE) market data displayed or referenced on this website is provided on a delayed basis and is not in real time. The delay period may vary but is typically at least 15 minutes. This data is intended for information purposes only and should not be relied upon for trading, investment, or other financial decisions. We do not guarantee the completeness, reliability, or suitability of the data for any particular purpose. Users should consult real-time data sources and obtain professional advice before making any financial decisions.