This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
With the FOMC due to make a statement regarding the reduction of its debt-purchasing scheme, traders were always going to be cautious today. Considering the correction the index had at the end of last week and on Monday, an argument could be made that a large proportion of these worries had already been factored in.
This morning has seen both the basic materials and financial sectors help prop up the Germany 30. More specifically, Volkswagen, Siemens and BASF look to have contributed the most to this mildly bullish performance. Deutsche Bank has been in the news today as well, stating that it will be cutting the total employee compensation for their investment bank arm by 23%. These will see the pool for salaries and bonuses cut from €1.3 billion down to €1 billion.
The index is still some 300 points away from the highs of last week, but it has moved back up above the 50-day moving average. Any trades taken today ahead of the important US figures should be done with real caution.