GER 40 Index Weekly Special Report based on 1.00 Lot Calculation:
GER 40 INDEX:
- The GER40 index represents the DAX 40 index in Germany, which includes companies such as Adidas, Bayer, Daimler, Deutsche Bank, Siemens, BMW, E.ON etc. In essence, the index includes the most valuable and advanced companies in Germany, the largest economy in Europe.
EVENTS IN GERMANY AFTER RECENT ELECTIONS:
- TUESDAY, MARCH 18: VOTE ON FISCAL PACKAGE. Lawmakers could vote on the proposed financial package, which includes reforms to the constitutional debt brake and increased defense spending. If approved, the package could boost investor confidence, particularly benefiting companies in the defense, construction, and infrastructure sectors listed in the GER 40. This should allow for around 500 billion euros investments in Germany’s infrastructure and an additional 500 billion euros in defense. (Source: Reuters)
- TUESDAY, MARCH 25: FORMATION OF NEW GOVERNMENT AND PARLIAMENT. The newly elected German Bundestag will hold its first session on March 25, led by CDU/CSU, which, along with the SPD and the Greens have more than two-thirds majority in parliament. Source: Bild
ECONOMIC CALENDAR:
- WEDNESDAY, MARCH 19 AT 10:00 GMT: EUROZONE CONSUMER PRICE INDEX (CPI) (February): If inflation weakens, the European Central Bank (ECB) could further lower interest rates, reducing borrowing costs for businesses and boosting economic activity. This could increase investor confidence and drive up the GER40 index.
- THURSDAY, MARCH 20-21 AT 10:00 GMT: EU LEADERS SUMMIT: EU leaders are meeting in Brussels to discuss competitiveness and to follow up on the special European Council held on 6 March to address Russia-Ukraine war and the EU’s support to Ukraine, the situation in the Middle East, European defense, migration, and the EU’s economy.
- MONDAY, MARCH 24 AT 8:30 GMT AND 9:00 GMT: GERMAN AND EUROZONE MANUFACTURING AND SERVICES PURCHASING MANAGERS INDEX (PMI) (MARCH): A stronger-than-expected PMI could signal growth in the European and German manufacturing sectors, boosting corporate earnings expectations and supporting higher GER40 prices.
- THURSDAY, APRIL 17: EUROPEAN CENTRAL BANK (ECB) INTEREST RATE CUT DECISION. The ECB cut its benchmark interest rate in March from 2.90% to the current 2.65%, and investors expect the ECB could continue with their rate-cutting cycle on. If the ECB does decide on an interest rate cut, this could push the GER40 higher, as borrowing costs for businesses could become lower and therefore allow for the economy to grow and expand.
STATISTICS: THE GER40 INDEX HIT AN ALL-TIME HIGH OF 23,736 (MARCH 18, 2025): THE INDEX HAS RISEN AROUND 27% SINCE THE ECB STARTED CUTTING INTEREST RATES IN JUNE 2024. HOWEVER, THE PRICE COULD DECLINE.
GER40, March 18, 2025
Current Price: 23,690
|
GER40 |
Weekly |
|
Trend direction |
|
|
25,150 |
|
|
24,800 |
|
|
24,340 |
|
|
23,110 |
|
|
23,000 |
|
|
22,750 |
Example of calculation based on weekly trend direction for 1.00 Lot1
|
GER40 |
||||||
|
Pivot Points |
||||||
|
Profit or loss in $ |
15,962 |
12,135 |
7,106 |
-6,341 |
-7,543 |
-10,277 |
|
Profit or loss in €² |
14,600 |
11,100 |
6,500 |
-5,800 |
-6,900 |
-9,400 |
|
Profit or loss in £² |
12,290 |
9,344 |
5,472 |
-4,882 |
-5,808 |
-7,913 |
|
Profit or loss in C$² |
22,807 |
17,340 |
10,154 |
-9,061 |
-10,779 |
-14,684 |
1. 1.00 lot is equivalent of 10 units
2. Calculations for exchange rate used as of 11:20 (GMT) 18/03/2025
There is a possibility to use Stop-Loss and Take-Profit.
- You may wish to consider closing your position in profit, even if it is lower than suggested one.
- Trailing stop technique could protect the profit.