cheers on Wall Street. A dealer is the record cap.photo: AP
The new US President, Donald Trump promises investment and deregulation. The stock markets will react enthusiastically to these announcements. The benchmark German Dax index to rise.
Frankfurt – The us benchmark index Dow Jones Industrial has skipped for the first Time the mark of 20 000 meters. The first acts of the new US President, Donald Trump had convinced the markets, said the Analyst Wolfgang Albrecht of the Landesbank Baden-Württemberg (LBBW): “In trump’s swearing-in speech last week was not of infrastructure, programs, or control the speech cuts, the first has dampened the mood. However, during his first Meeting with American Executives, he has announced that it is in this direction." The Republicans had loaded on Monday, a dozen business leaders to the White house and the massive tax cuts promised.
These statements would have given the stock momentum, also believes Sebastian Werner, an expert in US-American equities at Deutsche Bank subsidiary Deutsche Asset Management. “Of Trump so far, especially clichés, but strengthened the expectation that a tax reform will come. If the tax rate for businesses from 30 percent to 20 plus x to go back, it would be a huge Boost for the profits," says Werner, who manages, among other things, the Fund DWS US Growth.
Meeting with the auto bosses
Even with the announced deregulation Trump wants to make, apparently, Seriously: At a Meeting with representatives of the car industry, he criticized that some of the environmental regulations values, the production of vehicles in the United States. The new government is delayed, moreover, the implementation of a number of conditions, the Ex-President Barack Obama shortly before the end of his term of office on the way.
By the expectation of deregulation, Bank benefited equities, says Werner. “If you look at the most important price driver in the Dow, including the banks Goldman Sachs and JP Morgan – which reflects the expectation that the low interest phase is now over and that the regulation of the financial sector could again be relaxed.” The Trump announced investments, and first decisions on oil Pipelines, as well as for the construction of a wall on the border to Mexico, pushed in addition to the construction sector, such as on the rate of Caterpillar and commodity values is to be expected.
in Contrast, trump’s protectionist statements, as well as the cancellation of the TRANS does not seem to be-Pacific free trade agreement TPP to worry the financial markets so far. According to the assessment of Werner’s that “with Faith in the American economy, which is simply a huge internal market”. For part, investors were hoping well actually on a Re-industrialization of the USA, when there are less Goods should be imported.
Not only Trumps merit
However, the Dow record not only Trumps merit. “The fact that the 20 000 points, it was only a matter of time,” says LBBW Analyst Albrecht, with a view to the months-long flirtation with the stock market, the barometer of this brand. Werner added: “The previously submitted reports for the fourth quarter are well down, the projections of the company are confident. The economic data are positive – because of the multiple effects reinforce each other."
Albrecht believes there are good chances that it goes uphill in the equity markets continues: “If such be psychologically skipped the major brands, and enhances the buying mood.” So also, the German share index (Dax) rose in the Wake of the Wall Street on Wednesday vigorously, he closed 1.8 percent in the Plus at 11 806 points. LBBW assumes that the Dax rises this year, about 12 000 meter. Fund Manager Werner also sees the US stock market to above, provided that the company increase profits. “Against the wind comes, however, from the strong US Dollar and rising wage costs. In addition, might slow down with rising interest rates, the credit growth," he says.
Strong recovery expected
The private Bank Sal. Oppenheim assumes that European equities will catch up in the next few months. This is because, unlike the US Federal Reserve, the European Central Bank (ECB) does not want to raise interest rates this year. As a result, a considerable advantage arises to the company in the Euro-zone”,” says investment strategist Lars Edler.