DAX 30 Fundamental Analysis – Forecast for the week of September 19, 2016

The DAX 30 had a rocky week and remains weak after the US Department of Justice proposed a settlement with Deutsche Bank of 14 billion dollars to resolve the US mortgage crisis. The index is down almost 3% for the week and 4.35% for the year. The DAX will open at 10276.00. Banks were led lower after Germany’s New York-listed Deutsche Bank was reported to be hit with a US settlement claim of $14bn for selling toxic mortgage-backed securities in the so-called “subprime mortgage” scandal of the mid 2000s which led to the financial crisis.

Lenders took a hit after the US Department of Justice proposed that Deutsche Bank pay $14bn to settle allegations of mis-selling mortgage securities. However, Deutsche Bank said it had no intention to settle the claims anywhere near that figure.

European stock markets retreated yesterday, as banking shares led by Deutsche Bank slumped on news US authorities were hunting down Germany’s biggest lender over a record fine.

Frankfurt’s DAX 30 was the hardest hit, closing down 1.5% at 10,276.17, while the Paris CAC 40 shed nearly 1% at 4,332.45 compared with the close on Thursday.

The US Justice Department is seeking up to $14bn (€12.5bn) from Deutsche Bank to resolve allegations stemming from the sale of mortgage securities in the 2008 crisis, the German financial giant confirmed.

It added that the DoJ had invited the bank to submit a counter offer, and said it expected to reach a “materially lower” figure in negotiations.

But the news hammered Deutsche Bank shares, which sank 8.5% to close at €11.99 in Frankfurt.

FxEmpire provides a wide variety of analysis on a daily, weekly and monthly basis ranging from our exceptional technical analysis as well as our in-depth fundamental analysis along with our daily news and market updates. To get the best understanding of each asset it is important to review the short term daily analysis with the longer term monthly reports. To get email notification when each of these are posted please sign up for our daily newsletter.


This Week’s Economic Events That You Should Be Monitoring:

Date Country Name Volatility Previous
9/20/2016 AUD RBA Meeting’s Minutes 3
9/20/2016 CAD BoC Governor Poloz 3
9/21/2016 AUD Mid-Year Economic Outlook 3
9/21/2016 JPY BoJ Interest Rate Decision 3 -0.1
9/21/2016 JPY BoJ Monetary Policy Statement 3
9/21/2016 JPY BoJ Press Conference 3
9/21/2016 USD FOMC Economic Projections 3
9/21/2016 USD Fed’s Monetary Policy Statement 3
9/21/2016 USD Fed Interest Rate Decision 3 0.5
9/21/2016 USD FOMC Press conference 3
9/21/2016 NZD RBNZ Interest Rate Decision 3 2
9/22/2016 EUR ECB President Draghi’s Speech 3
9/23/2016 AUD RBA’s Governor Lowe Speech 3

Government Bond Auctions

Date Time       Country           Auction

Sep 19 11:00 Belgium Eur 2.8-3.5bn 4.5% Mar 2026,

Sep 20 11:30 UK Gbp 2.5bn 1.5% Jul 2047 Gilt

Sep 21 10:30 Denmark Holds bond auction

Sep 21 11:03 Sweden Sek 2bn 4.25% Feb 2019 & Sek 1.5bn 1.5% Nov 2023 bonds

Sep 21 11:30 Germany Eur 4bn 0% Oct 2021 Bobl

Sep 22 17:20 Italy Announces details of bond auction

Sep 22 19:00 US Usd 11bn 0.125% Jul 2026 TIP

Sep 26 11:30 Germany Eur 1.5bn Sep 2017 Bubill

Sep 26 13:00 Norway Details of bond auction on Sep 28

Sep 27 11:00 Netherlands Eur 0.75-1.25bn 4% Jan 2037 DSL

Sep 27 11:10 Italy Holds zero coupon/BTP€i auction

Sep 28 11:05 Norway Holds bond auction

Sep 28 11:30 Germany Eur 4bn Sep 2018 Schatz

Sep 29 11:03 Sweden Holds I/L bond auction