Today's edition of the Saxo Morning Call features the SaxoStrats team discussing the continuing weakness of the US dollar as commodity prices recover ground and in the wake of key US equity indices hitting all-time highs Thursday.
Medium term
Trade view / 10 April 2015 at 9:38 GMT

#saxostrats: Long Deutsche Boerse on QE-fuelled rebound in trading

Head of Equity Strategy / Saxo Bank
Instrument: DB1Gn:xetr
Price target:
Market price:

Quantitative easing is fuelling an “all-in” mentality in European securities , and driving a rebound in trade volume across derivatives and cash instruments. 

Deutsche Boerse is a European alpha pick with a very low valuation (EV/EBITDA 5.3x).

Management and risk description

Key risks are a stronger euro, any negative macro surprise and weaker than expected Q1 earnings.


Entry: Buy Deutsche Boerse shares at market. 

Time horizon: One month.

Deutsche Boerse weekly share price since Q1 2011
Deutsche Borse

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Source: Saxo Bank. 

— Edited by Oliver Morrison

For more on equities click here

Non-independent investment research disclaimer applies. Read more
martingrexa martingrexa
Hi Peter, what is the instrument please? Chart is rolls royce. Thank you
Peter Garnry Peter Garnry
Getting fixed now...the ticker code is DB1Gn:xetr
Rodrigues Rodrigues
Hi Peter. You advised shorting Dax just a few days ago stating it was overvalued. Do you maintain you put?
Peter Garnry Peter Garnry
Yes the put is still on.
Peter Garnry Peter Garnry
Just to clarify...we are taking all positions in live environment, so we are not recommending trades we are not executing ourselves. We will post performance in the near term future.

I understand that it looks like we were bearish on the DAX and then flipped around and bought a German single stock. It was our intention to buy single stocks all along - we have set some risk limits on various trade types (single stocks, pair trades, pattern trades, options, macro etc.). The put option on DAX still makes sense given valuation and price development this year.
Rodrigues Rodrigues
Thanks very much for your explanation Peter.


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