10.05.2024 Upcoming Corporate Actions

Аватар на автора

Date

German Services PMI Slows in June

Your capital is at risk if you invest. You could lose all your investment. Please see the full risk warning here.

During the ECB’s annual gathering in Sintra, both Jerome Powell and Christine Lagarde emphasized the importance of tackling inflation and indicated that their job was not yet complete. Lagarde confirmed the European Central Bank’s intention to raise rates in July, and the upcoming release of eurozone consumer price data will provide insights into the possibility of further rate increases this year.

The June CPI figure for the eurozone was 5.5%, slightly better than expected and a decline from last month’s 6.1%. French inflation reached a 14-month low, following the trend set by Spain and Italy, while German consumer price gains accelerated. Germany’s CPI increased to 6.4% from a 14-month low in May. Traders anticipate the ECB’s deposit peak rate to reach 4%, with another increase projected for July, and a potential additional hike in September.

German exports have displayed high volatility since last summer, with an overall downward trend rather than an upward one. Trade is no longer a robust growth driver for the German economy due to factors such as supply chain disruptions, a more fragmented global economy, and China’s increasing ability to produce goods it previously imported from Germany. German exports to China have decreased from nearly 8% to 6% of total exports since the pandemic, while Germany’s import dependence on China remains high as energy transition is almost impossible without Chinese raw materials or solar panels.

The ongoing weakening of export order books, the anticipated US economic slowdown (which constitutes roughly 10% of total German exports), high inflation, and increased uncertainty will likely impact German exports in the near term. However, the CEE countries currently account for over 11% of total German exports, offer a partial silver lining.

In June, growth in Germany’s services sector slowed, indicating a loss of momentum despite a recent resurgence in demand. The services PMI declined to 54.1 from a 13-month high of 57.2 in May but remained above the growth threshold of 50. The composite PMI, which includes services and manufacturing, fell to a five-month low of 50.6 in June, suggesting moderate growth in the overall economy for the second quarter and is only slightly above the growth threshold.

While Germany may potentially avoid a continuation of the recession that began in the fourth quarter of the previous year, there is a heightened risk of the economy slipping into another recession in the latter half of 2023.

A graph of stock market

Description automatically generated

Source: TradingView, 1Year DAX 40 Daily Chart

Investors were also concerned about China’s faltering economic recovery, leading to a further decline in the DAX 40 index on Wednesday. A lower high has clearly emerged on the daily chart, increasing the probability of the formation of a head and shoulders.

A break below minor support of 15,629 would confirm the pattern and could trigger a decline to the 15,400 – 15,250 range. The quadruple bearish divergence between the price and the Relative Strength Index (RSI) indicator also throws a negative cast on the chart, pointing to a likely deeper pull back in the near-term.

Active traders looking for magnified exposure to the German share market may consider our +3x Long Germany 40 and -3x Short Germany 40 ETPs to take advantage of upcoming short-term moves.

Overall, ETPs have revolutionized the way investors gain exposure to a variety of asset classes, making investing more accessible, affordable, and transparent. These investment vehicles offer several benefits that make them an attractive choice for investors.

Our ETFs are designed to provide investors with a cost-effective way to diversify their portfolios and gain leveraged exposure to a wide range of assets, such as stocks, bonds and commodities that were once out of reach.

In summary, our ETPs provide a unique investment opportunity for investors looking for diversification, leverage, flexibility, cost-efficiency, and liquidity who seek to amplify profits in both rising and falling markets.

Websim is the retail division of Intermonte, the primary intermediary of the Italian stock exchange for institutional investors. Leverage Shares often features in its speculative analysis based on macros/fundamentals. However, the information is published in Italian. To provide better information for our non-Italian investors, we bring to you a quick translation of the analysis they present to Italian retail investors. To ensure rapid delivery, text in the charts will not be translated. The views expressed here are of Websim. Leverage Shares in no way endorses these views. If you are unsure about the suitability of an investment, please seek financial advice. View the original at

Your capital is at risk if you invest. You could lose all your investment. Please see the full risk warning here.

Share this:

Related Products:

Related Products:

Related Articles

Less about economics and earnings, more about discontent and rage
Less about economics and earnings, more about discontent and rage
Less about economics and earnings, more about discontent and rage

Required Information

Welcome to Leverage Shares

Terms and Conditions

Notice

If you are not classified as an institutional investor, you will be categorised as a private/retail investor. At this time, we cannot send communications directly to private/retail investors. You are welcome to view the contents of this website.

If you are an ‘Institutional investor’, you affirm either that you are a Per Se Professional Client, or that you wish to be treated as an Eligible Counterparty Client, both as defined under the Markets in Financial Instruments Directive, or an equivalent in a jurisdiction outside the European Economic Area.

Risk Warnings

The value of an investment in ETPs may go down as well as up and past performance is not a reliable indicator of future performance. Trading in ETPs may not be suitable for all types of investor as they carry a high degree of risk. You may lose all of your initial investment. Only speculate with money you can afford to lose. Changes in exchange rates may also cause your investment to go up or down in value. Tax laws may be subject to change. Please ensure that you fully understand the risks involved. If in any doubt, please seek independent financial advice. Investors should refer to the section entitled “Risk Factors” in the relevant prospectus for further details of these and other risks associated with an investment in the securities offered by the Issuer.

This website is provided for your general information only and does not constitute investment advice or an offer to sell or the solicitation of an offer to buy any investment.

Nothing on this website is advice on the merits of any product or investment, nothing constitutes investment, legal, tax or any other advice nor is it to be relied on in making an investment decision. Prospective investors should obtain independent investment advice and inform themselves as to applicable legal requirements, exchange control regulations and taxes in their jurisdiction.

This website complies with the regulatory requirements of the United Kingdom. There may be laws in your country of nationality or residence or in the country from which you access this website which restrict the extent to which the website may be made available to you.

United States Visitors

The information provided on this site is not directed to any United States person or any person in the United States, any state thereof, or any of its territories or possessions.

Persons accessing this website in the European Economic Area

Access to this site is restricted to Non-U.S. Persons outside the United States within the meaning of Regulation S under the U.S. Securities Act of 1933, as amended (the “Securities Act”). Each person accessing this site, by so doing, acknowledges that: (1) it is not a U.S. person (within the meaning of Regulation S under the Securities Act) and is located outside the U.S. (within the meaning of Regulation S under the Securities Act); and (2) any securities described herein (A) have not been and will not be registered under the Securities Act or with any securities regulatory authority of any state or other jurisdiction and (B) may not be offered, sold, pledged or otherwise transferred except to persons outside the U.S. in accordance with Regulation S under the Securities Act pursuant to the terms of such securities. None of the funds on this website are registered under the United States Investment Advisers Act of 1940, as amended (the “Advisers Act”).

Exclusion of Liability

Certain documents made available on the website have been prepared and issued by persons other than Leverage Shares Management Company. This includes any Prospectus document. Leverage Shares Management Company is not responsible in any way for the content of any such document. Except in those cases, the information on the website has been given in good faith and every effort has been made to ensure its accuracy. Nevertheless, Leverage Shares Management Company shall not be responsible for loss occasioned as a result of reliance placed on any part of the website and it makes no guarantee as to the accuracy of any information or content on the website. The description of any ETP Security referred to in this website is a general one. The terms and conditions applicable to investors will be set out in the Prospectus, available on the website and should be read prior to making any investment.

Leverage Investment

Leverage Shares exchange-traded products (ETPs) provide leveraged exposure and are only suitable for experienced investors with knowledge of the risks and potential benefits of leveraged investment strategies.

Cookies

Leverage Shares Management Company may collect data about your computer, including, where available, your IP address, operating system and browser type, for system administration and other similar purposes (click here for more information). These are statistical data about users’ browsing actions and patterns, and they do not identify any individual user of the website. This is achieved by the use of cookies. A cookie is a small file of letters and numbers that is put on your computer if you agree to accept it. By clicking ‘I agree’ below, you are consenting to the use of cookies as described here. These cookies allow you to be distinguished from other users of the website, which helps Leverage Shares Company provide you with a better experience when you browse the website and also allows the website to be improved from time to time. Please note that you can adjust your browser settings to delete or block cookies, but you may not be able to access parts of our website without them.

This website is maintained by Leverage Shares Management Company, which is a limited liability company and is incorporated in Ireland with registered offices at 2 Grand Canal Square, Grand Canal Harbour, Dublin 2. 

By clicking you agree to the Terms and Conditions displayed.