Skip to content Skip to footer

DAX 30 Rallies as Economic Growth is Updated, Tesla Stock Reacts to Musk Selling Shares & UK GDP Disappoints

DAX 30 rallies, as EU commission updates growth forecast

The DAX 30 in Germany climbed to a new high during Thursday’s session, as the EU commission updated its economic growth forecast.

According to the Commission, GDP within the Eurozone will now grow by 5% in 2021, after initially forecasting a 4.3% rise in May.

In addition to this, it is now expected that inflation would reach 2.4% this year, which is up from 0.3% in 2020, and marginally higher than the ECB’s 2% target.

💡 EU growth expectation
Gentiloni praised the bloc’s €750 billion ($860 billion) recovery fund that already helped the economy to rebound from the shock of the pandemic.

At the same time, he warned of three “key threats to this positive picture” — the rise in new COVID-19 cases and low vaccination rate in some countries, the “rising inflation, driven largely by a spike in energy prices,” and supply-chain disruptions.

The inflation in the euro area is projected to peak at 2.4% this year, while the rise in prices will be slightly higher — 2.6% — in the entire bloc.

Shortly after today’s report, Vice President of the commission Valdis Dombrovskis stated that, “Our measures to cushion the blow of the pandemic and to ramp up vaccinations across the EU have clearly contributed to this success”.

EURUSD dropped to an intraday low of 1.1445 in the session, its lowest level since August last year.

Tesla stock drops, after Musk sells shares

Shares in Tesla were trading lower as of writing, as markets continued to react to the news that Founder Elon Musk had sold shares in the company.

Musk released filings which showed that he had sold roughly $5 billion of his stock in the company, days after twitter users voted for him to do so.

The sale is the first time since 2016 Musk has liquidated any shares in the EV maker and has resulted in a bearish week for the company.

This week’s selloff has seen Tesla lose close to $150 billion in market value, despite many retail traders still buying the dip.

As of writing, the selloff had slowed, with $TSLA trading 0.39% lower on the session.

GBPUSD nears 1-year low, as UK GDP disappoints

Data released from the United Kingdom on Thursday, reported that the nation’s GDP had grown less than expected in the last quarter.

Britain’s gross domestic product grew by 1.3% during the third quarter, which is 0.2% lower than the rate markets had expected.

Get the latest market analysis from Coach on TradeGATEHub

Overall, GDP fell considerably below Q2’s 5.5% growth rate and comes as consumer spending slowed down during the summer months.

GBPUSD fell to an intraday low of 1.3359, which is the lowest rate for cable since December 20th, when a nationwide lockdown was announced in the UK.

Thursday’s lower pound story has however benefitted the FTSE 100, which closed 0.60% higher on the day.

“Do more of what works and less of what doesn’t.”

– Steve Clark

Eliman Dambell

Senior Market Analyst

 

Tradeview Ltd. is not a portfolio manager or an investment advisor. This Market Report is for informational purposes only. Any statements made or opinions voiced in this Market Report do not constitute investment advice. The Tradeview Ltd. Market Report does not constitute a solicitation to buy or sell in the financial markets. Although the information contained in the Market Report comes from trusted sources, Tradeview Ltd. is not responsible for guaranteeing the accuracy, timeliness, completeness, or fitness of such sources. Tradeview Ltd. shall not be responsible for and disclaims all liability for any losses which may be suffered from access and use of the contents of the Tradeview Ltd. Market Report. Trading any financial instrument on margin, using leverage or otherwise involves considerable risk. Therefore, before deciding to participate in any style of trading, you should carefully consider your investment objectives, level of experience and risk appetite. Most importantly, do not invest money you cannot afford to lose. Consulting with your investment counselor, attorney, accountant or other professional upon whom you rely for guidance as to the appropriateness of an investment in any style of trading is recommended.

Tradeview Ltd.

Is licensed to carry on securities investment business and is regulated by the Cayman Islands Monetary Authority (CIMA) as a full securities broker-dealer. Tradeview conducts business pursuant to the Cayman Islands Securities Investment Business Law (SIBL) and its activities fall under the direct supervision of the Investments and Securities Division of CIMA.
Headquarters: 5th Floor Anderson Square, 64 Shedden Road, Georgetown, Grand Cayman, Cayman Islands KY1-1002, BWI.
Website: www.tradeviewforex.com

Tradeview Asia Ltd.

Is licensed and regulated by the Labuan Financial Services Authority (FSA) as a Money Broker, registration number LL15870 licensed to facilitate transactions in foreign exchange pursuant to Labuan Financial Services and Securities Act 2010, the Labuan Companies Act 1990 and the Labuan Business Activity Tax Act 1990.
Headquarters: International Business Financial Centre at Office 5, Jamie Business Center I, Unit F10, First Floor, Paragon Labuan, Jalan Mustapha, 87000 Labuan F.T.
Website: www.tvmgloballtd.com

Tradeview Europe Ltd.

Is licensed as a Category 2 Investment Service Company and is regulated by the Malta Financial Services Authority (MFSA). The Malta Financial Services Authority (MFSA) is the single regulator for financial services in Malta. MFSA is a fully autonomous public institution and reports to Parliament on an annual basis. The MFSA is a member of the European Banking Authority (EBA), the European Securities and Markets Authority (ESMA) and the International Organization of Securities Commissions (IOSCO) and is a signatory of the Multilateral Memorandum of Understanding with other European regulatory Institutions. Tradeview is authorized to provide financial services across multiple asset classes and is passported in the EU/EEA under MiFID II (EU Markets in Financial Instruments Directive).
Headquarters: 157 Archbishops Street, Valletta VLT Malta 1440.
Website: www.tradeview.eu

Tradeview Financial Markets S.A.C Global

Is authorized to conduct business pursuant to and in compliance with the General Law of Companies (LGS) promulgated by the government of Peru. Tradeview Financial Markets S.A.C is registered with the National Superintendence of Public Registries (SUNARP), company number 13089531. Tradeview Financial Markets S.A.C provides financial services in selected OTC derivative markets in compliance with all applicable government regulations.
Headquarters: Los Mirtos 239 Urb. San Eugenio, Lince, Lima, Perú.
Website: www.tradeviewlatam.com