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.
GERMANY POLITICAL SCENE: VOTE FOR NEW CHANCELLOR
- EVENT (EXPECTED: TUESDAY, MAY 6 AT 14:15 GMT+1): BUNDESTAG (GERMAN PARLIAMENT) VOTE FOR WHETHER FRIEDRICH MERZ SHOULD BE THE NEXT CHANCELLOR OF GERMANY. On May 6, 2025, CDU leader Friedrich Merz failed to secure the necessary majority in the Bundestag to be elected Chancellor, but another vote is expected to take place on Tuesday, May 6. If the second vote brings victory to Mr. Merz, then the GER40 index prices could see an upward momentum, although prices could also fall.
US AUTO TARIFFS AND TARIFF POLICY: TRADE WAR
- BREAKING (APRIL 30): US PRESIDENT TRUMP SOFTENED AUTO TARIFFS. President Donald Trump signed executive orders to relax some of his 25% tariffs on automobiles and auto parts. This will allow carmakers to offset tariffs for imported auto parts used in U.S.-assembled vehicles. The amount they can offset is equal to 3.75% of the total value of the Manufacturer’s Suggested Retail Price of vehicles built through April 2026, and 2.5% of their total U.S. production through April 30, 2027.
- RECIPROCAL TARIFFS SUSPENDED BY 90 DAYS: US president Donald Trump suspended their reciprocal tariffs on the rest of the world by 90 days.
- TRADE NEGOTIATIONS TO BEGIN IMMEDIATELY: More than 70 countries called on Trump's administration to start trade and tariff negotiations immediately. President Trump directed tariff talks to begin immediately with South Korea, Japan and India.
- NEGOTIATIONS WITH EU: Trade commissioner Sefrovic visited the US for talks on trade saying that they are ready for fair deals through 0-for-0 tariff offer on industrial goods.
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%.
GER40, May 6, 2025
Current Price: 23,310
|
GER40 |
Weekly |
|
Trend direction |
|
|
24,750 |
|
|
24,400 |
|
|
23,950 |
|
|
22,730 |
|
|
22,630 |
|
|
22,530 |
Example of calculation based on weekly trend direction for 1.00 Lot1
|
GER40 |
||||||
|
Pivot Points |
||||||
|
Profit or loss in $ |
16,308 |
12,344 |
7,248 |
-6,568 |
-7,701 |
-8,845 |
|
Profit or loss in €² |
14,400 |
10,900 |
6,400 |
-5,800 |
-6,800 |
-7,800 |
|
Profit or loss in £² |
12,200 |
9,235 |
5,422 |
-4,914 |
-5,761 |
-6,605 |
|
Profit or loss in C$² |
22,509 |
17,038 |
10,004 |
-9,066 |
-10,629 |
-12,205 |
- 1.00 lot is equivalent of 10 units
- Calculations for exchange rate used as of 13:10 (GMT+1) 6/5/2025
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.