GER 40 Index Weekly Special Report based on 1.00 Lot Calculation:
- 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:
- EVENT (THURSDAY, MARCH 6): EU LEADERS SUMMIT: EU leaders are meeting for a special summit to discuss continued support for Ukraine and European defense. The President of Ukraine, Volodymyr Zelenskyy, is invited to the meeting.
- EVENT (THURSDAY, MARCH 6 AT 13:15 GMT): EUROPEAN CENTRAL BANK (ECB) INTEREST RATE CUT DECISION. The decision will be followed by a press conference at 13:45 GMT. The ECB cut its benchmark interest rate in January from 3.15% to the current 2.90%, 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 23,348.5 (MARCH 3, 2025): THE INDEX HAS RISEN AROUND 25% SINCE THE ECB STARTED CUTTING INTEREST RATES IN JUNE 2024. HOWEVER, THE PRICE COULD DECLINE.
BENEFITS FROM RISING EU DEFENSE SPENDING:
- INCREASED DEFENSE BUDGETS: European countries are committing to higher defense expenditures, benefiting companies like Rheinmetall, a DAX 40 component, whose shares hit record highs following these announcements.
- GOVERNMENT INITIATIVES: According to German media, Germany’s potential new government led by Mr. Mertz, is considering an investment at nearly 1 trillion euro, 400 billion euro for the armed forces and at up to 500 billion euro for Germany's wider infrastructure. These sums combined would amount to 20% of German GDP (Gross Domestic Product). (Source: Reuters, Euroactiv)
GER40, March 5, 2025
Current Price: 23,170
|
GER40 Index |
Weekly |
|
Trend direction |
|
|
24,600 |
|
|
24,250 |
|
|
23,800 |
|
|
22,600 |
|
|
22,500 |
|
|
22,250 |
Example of calculation based on weekly trend direction for 1 Lot1
|
GER40 Index |
||||||
|
Pivot Points |
||||||
|
Profit or loss in $ |
15,309 |
11,562 |
6,744 |
-6,102 |
-7,173 |
-9,849 |
|
Profit or loss in €2 |
14,300 |
10,800 |
6,300 |
-5,700 |
-6,700 |
-9,200 |
|
Profit or loss in £2 |
11,926 |
9,007 |
5,254 |
-4,754 |
-5,587 |
-7,672 |
|
Profit or loss in C$2 |
22,024 |
16,633 |
9,703 |
-8,779 |
-10,319 |
-14,169 |
- 1.00 lot is equivalent of 10 units
- Calculations for exchange rate used as of 10:00 (GMT) 5/3/2025
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.