Your capital is at risk if you invest. You could lose all your investment. Please see the full risk warning here.
Germany is starting 2023 with brighter prospects than could not have been expected a few months ago. The unusually warm weather has invalidated concerns that there would be disruptive gas shortages and rationing over the winter. Natural gas prices have been falling steadily since August 2022 from a peak of $9.98 to a low of $2.98 on Wednesday, and LNG supplies from the U.S. and the Middle East kept flowing.
In recent statements by the European Central Bank (ECB), President Christine Lagarde reaffirmed that the bank will maintain its aggressive interest rate hikes. Lagarde argued that inflation in the Eurozone remain elevated, despite optimism that inflation may have peaked as latest data from last week showed that inflation in Europe dropped slightly to 9.2% in December 2022.
ECB governing council member Klaas Knot stated that the ECB is likely to raise interest rates by 50 basis points in February and March and will continue to increase rates in the following months. These comments came before the ECB enters a blackout period on Thursday, ahead of the central’s bank policy meeting on the 2nd of February.
The consumer confidence indicator in the Euro Area rose for a third month to -22.2 in December, up from -23.9 the prior month reaching the highest levels since May 2022. A key gauge of the Eurozone economy signalled growth for the first time in seven months, as the collapse of natural gas prices underpinned consumer sentiment and averted a meltdown in industrial output.
S&P Global flash composite purchasing managers’ Index, which tracks both the manufacturing and services sectors that together account for more than two-thirds of Germany’s economy, rose for the third consecutive month, to 49.7 in January from 49.0 in December.
S&P Global composite purchasing managers’ index for the Eurozone rose by more than expected to 50.2 in January, from 49.3 in December. While that may not be sufficient to avert a recession, it adds to growing evidence that a potentially upcoming recession could be brief and shallow, and as such allowing the European Central Bank to keep raising interest rates to bring inflation down faster.
While the euro zone composite PMI returned to growth territory in January, Germany remained below 50. January marked the seventh consecutive month in which the indicator lagged below the 50 level, which separates growth from contraction.
Germany’s most prominent indicator, the Ifo business climate indicator rose by 1.6 points from a month earlier to 90.2 in January 2023, the fourth consecutive month of increase and the highest level since June last year.
The inflow of optimistic data continues. After the PMI and the ZEW, it is now the latest Ifo index reading which points to an improving outlook for the German economy. While the economy is not out of the woods yet, it shows its more resilient than feared.
The steadying of the eurozone grows hopes that the block might escape a recession. Fears over the energy market have been alleviated by falling oil and gas prices, also helped by the warmer than usual weather and generous government assistance.
Overall, the European economy has emerged from the Russia-Ukraine war at a better shape than anticipated. For the most part of 2022, the consensus was that the region would struggle because of the energy sector. Instead, data published recently showed that the economy avoided a recession in the third quarter, as it was supported by the services sector.
The German benchmark DAX 40 index has been trading in an upward trajectory since September 2022, rising more than 28% in less than four months span. Current price levels hover around previous key support of 15,020, which could act as a resistance in the short-term.
A bearish divergence between the price and the Relative Strength Index has formed over the past two months on the daily chart, showing that the rally from the September 2022 low is losing momentum.
Given the overbought and diverging momentum conditions, there is good probability of a pull back in the short-term. A break below minor support of 14,906 would confirm this view and could trigger a decline to 14,620.
Active traders looking for magnified exposure to the German equity index could consider our 3x Long Germany 40 and -3x Short Germany 40 ETPs.
Investing in ETPs has never been more accessible than it is today. Our ETFs are designed to provide investors with the opportunity to diversify their portfolios and gain exposure to a wide range of assets, all while minimizing risk.
In summary, our ETPs provide a unique investment opportunity for investors looking for diversification, leverage, and liquidity. Don’t miss out on the chance to grow your wealth and achieve your financial goals.
Your capital is at risk if you invest. You could lose all your investment. Please see the full risk warning here.
Sandeep joined Leverage Shares in September 2020. He leads research on existing and new product lines, asset classes, and strategies, with special emphasis on analysis of recent events and developments.
Sandeep has longstanding experience with financial markets. Starting with a Chicago-based hedge fund as a financial engineer, his career has spanned a variety of domains and organizations over a course of 8 years – from Barclays Capital’s Prime Services Division to (most recently) Nasdaq’s Index Research Team.
Sandeep holds an M.S. in Finance as well as an MBA from Illinois Institute of Technology Chicago.
Violeta joined Leverage Shares in September 2022. She is responsible for conducting technical analysis, macro and equity research, providing valuable insights to help shape investment strategies for clients.
Prior to joining LS, Violeta worked at several high-profile investment firms in Australia, such as Tollhurst and Morgans Financial where she spent the past 12 years of her career.
Violeta is a certified market technician from the Australian Technical Analysts Association and holds a Post Graduate Diploma of Applied Finance and Investment from Kaplan Professional (FINSIA), Australia, where she was a lecturer for a number of years.
Julian joined Leverage Shares in 2018 as part of the company’s premier expansion in Eastern Europe. He is responsible for web content and raising brand awareness.
Julian has been academically involved with economics, psychology, sociology, European politics & linguistics. He has experience in business development and marketing through business ventures of his own.
For Julian, Leverage Shares is an innovator in the field of finance & fintech, and he always looks forward with excitement to share the next big news with investors in the UK & Europe.
Oktay joined Leverage Shares in late 2019. He is responsible for driving business growth by maintaining key relationships and developing sales activity across English-speaking markets.
He joined LS from UniCredit, where he was a corporate relationship manager for multinationals. His previous experience is in corporate finance and fund administration at firms like IBM Bulgaria and DeGiro / FundShare.
Oktay holds a BA in Finance & Accounting and a post-graduate certificate in Entrepreneurship from Babson College. He is also a CFA charterholder.
Terms and Conditions
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.
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 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.
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.