• DE30 makes steady gains led by automakers
  • US stocks also boosted after China announce cut to import duties 
  • More losses for TRY as Fitch cautions on outlook
  • Bitcoin lower on Bitcoin pizza day
  • Active bank recommendations

The DE30 has returned from a long weekend today in an upbeat mood, with the German benchmark reaching its highest level since January. Reports that China is said to cut import duties on passenger cars from 25% to 15% has boosted automakers in Germany and as such BMW (BMW.DE), Volkswagen (VOW.DE) or Daimler (DAI.DE) are amongst  today’s leaders of the DAX index.

The US500 has made steady gains so far today with price revisiting the region around Monday’s high of 2739. This is an area that traders will likely keep a close eye on with it also coinciding with last week’s high and offering potential resistance. The china story has also had an impact across the Atlantic although a bright open for GM and Tesla has faded somewhat. 

The rout on the Turkish Lira has shown little sign of easing up with the currency falling to record lows against both the Euro and the US dollar. Whilst it would be an over-simplification to attribute this latest decline to a single fresh development a warning from Fitch will have done little to aide the Lira’s cause. The ratings agency has warned that Turkey’s sovereign credit profile could come under pressure if central bank independence is challenged after next month’s snap election, which is widely expected to see President Erdogan consolidate his power. 

 Today is Bitcoin pizza day where cryptocurrency-enthusiasts will celebrate the 8th anniversary of a computer programmer who on this day bought two Papa John’s pizzas for 10,000 Bitcoins. Today’s value of the purchase would be around $82m, with the price falling a little lower on the day. In other crypto-related news an Argentinian bank has decided to let its customers select Bitcoin as a cross-border payment option.

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