Hello friends of Project Hope, I hope you are all very well, today I want to bring to you all a very clear example of how yesterday's news made the German market fall abruptly, demonstrated by a drop in the price of the main stock market index of this important country.
It is no secret that Germany is the main industrial power in Europe, and that what affects this country basically translates into an effect (positive or negative) in the rest of the European countries.
The main stock market index in Germany is the DAX (Deutscher Aktienindex), which reflects the performance of the 30 main companies listed on the Frankfurt Stock Exchange (Frankfurter Wertpapierbörse), which is the main stock exchange in Germany, is the equivalent of the US30 or Dow Jones in the United States.
As you can see in the image above, the DAX dropped practically 1000 points in price, that's a big discount, which implies that there was a drop that caused -at least temporarily- many to lose money. And this indirectly means that some confidence in these companies is lost.
However, and I must clearly note, that this is a one-day reaction, it is not something that is going to remain over time, but rather it was the result of the reaction to an important macroeconomic news. What you can see in the following image is a screenshot from the Forex Factory page.
That news, the German Trade Balance reflects "Difference in value between imported and exported goods during the reported month " Source and in this case we can see that it came out at 15.9B, much lower than expected (17.6B) , and much less than what came out the previous month (18.8B). This reflected in Billions of Dollars.
This news alone caused this important index to drop as it did, since in general what it says is that there has been a decrease in orders for products being placed with German companies. I know that this type of information is sometimes difficult to understand, but it is something that I particularly like, and that I have been spending time on lately in order to take advantage of the market.
I hope this post has been interesting for you. GREETINGS.
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