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, Mercedes Benz, 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.
MORE AND DIFFERENT TARIFFS TO COME:
- EVENT (WEDNESDAY, APRIL 2 AT 20:00 GMT+1): US RECIPROCAL TARIFFS ON APRIL 2: “LIBERATION DAY”. The Trump administration is planning to impose a round of fresh tariffs on April 2, a day President Trump has dubbed "liberation day." On April 2, Mr. Trump is expected to announce his administration's plans for so-called reciprocal tariffs to all countries, including Germany and the E.U. as a whole, which he deems necessary to erase trade imbalances with nations that export more goods to the U.S. than they import from it.
AUTO TARIFFS:
- US PRESIDENT DONALD TRUMP IMPOSED 25% TARIFFS ON CARS IMPORTED TO THE U.S.A. (NOT MADE IN THE U.S.A.), TAKING EFFECT APRIL 3. The 25% tariff on imported vehicles could significantly affect GER40 companies with substantial exposure to the automotive sector, such as Volkswagen, BMW, and Mercedes-Benz. Higher import costs could lead to increased vehicle prices, reduced sales, and profit margins. Additionally, potential supply chain disruptions could impact production and exports, influencing the overall performance of automotive stocks within the index.
- The big three German carmakers accounted for 73% of the EU's car exports to the U.S. last year, according to research platform JATO Dynamics.
- Germany is by far Europe’s largest exporter of cars to the US in terms of value.
EXPORTS OF CARS TO THE UNITED STATES (2024)
Source: Eurostat, ING
IMPACT/WEIGHT OF CAR MANUFACTURERS ON THE GER 40 INDEX:
- The automotive industry accounts for 10-15% of the GER40's total market capitalization, making it one of the most influential sectors.
- Volkswagen alone is among the top constituents, often holding a weight of around 4-5% of the index.
- BMW and Mercedes-Benz each contribute an additional 3-4%.
Source: Bloomberg
Q1 2025 EARNING SEASON RELEASES:
- PORSCHE AG: 4/29/25, Before Market, Confirmed
- VOLKSWAGEN AG: 4/30/25, Before Market, Confirmed
- MERCEDEZ-BENZ GROUP AG: 4/30/25, Before Market, Confirmed
Source: Bloomberg
GER40, April 1, 2025
Current Price:22,670
|
GER40 |
Weekly |
|
Trend direction |
|
|
23,600 |
|
|
23,400 |
|
|
23,200 |
|
|
22,100 |
|
|
21,600 |
|
|
21,200 |
Example of calculation based on weekly trend direction for 1.00 Lot1
|
GER40 |
||||||
|
Pivot Points |
||||||
|
Profit or loss in $ |
-10,033 |
-7,875 |
-5,717 |
6,149 |
11,543 |
15,858 |
|
Profit or loss in €² |
-9,300 |
-7,300 |
-5,300 |
5,700 |
10,700 |
14,700 |
|
Profit or loss in £² |
-7,781 |
-6,108 |
-4,434 |
4,769 |
8,953 |
12,299 |
|
Profit or loss in C$² |
-14,443 |
-11,337 |
-8,231 |
8,852 |
16,617 |
22,829 |
1. 1.00 lot is equivalent of 10 units
2. Calculations for exchange rate used as of 13:45 (GMT+1) 1/4/2025
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.