Trade talk optimism and improved German pmi data lift Dax
Trade talk optimism and stronger eurozone data boosted global stocks on Wednesday.
Share this:
Trade talk optimism and stronger eurozone data boosted global stocks on Wednesday.
Hopes that the US and China were close to agreeing a trade deal after ironing out the majority of outstanding issues, put fresh legs on the recent rally. The Dax is particularly sensitive to trade talk developments, given that the index is mainly formed of exporters.
Meanwhile a slew of better than expected pmi data from Italy and particularly Germany, plus eurozone retail sales surprising to the upside, eased concerns over the outlook for the region.
German service sector pmi unexpectedly increased in March to 55.4 up from 54.9 the month previous. This is some welcomed good news for Germany following disappointing manufacturing stats on Monday.
The yield on the German 10 year bond climbed above 0 for the first time in a week. The Dax surged over 1.2%, extending gains for a fifth straight session.
The Dax continues to move in an upward trend. A significant move above the key level of 12000 could indicate a breakout of the Dax’s current upward trending channel. Beyond this the next target will be 12100 before 12300. Any pullback we consider a buying opportunity. It would take a move below 11300 for a bearish stance to be revived.
Related tags:
Latest market news
Open an account in minutes
Experience award-winning platforms with fast and secure execution, and enjoy tight spreads from 0.5 pts on FX and 0.3 pts on indices.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
Oil Shock Hits Bond Yields and Squeezes the Consumer
U.S. 10-year and 30-year bond yields have moved higher as markets reopen after the Labor Day weekend, with the producer price index and the consumer price index landing within days of each other. The European Central Bank decision sits between them, where the economic projections and Christine Lagarde's press conference carry more market risk than the rate move itself. The DAX has also broken below its 21-day exponential moving average, a sign that momentum beneath a resilient index is starting to fade.
DAX, Crude oil forecast: Rising energy prices, yields threaten risk assets
Following a weak handover from Asia, European markets and US indices were under pressure this morning, as rising oil prices and elevated bond yields once again weighed on risk appetite. Among the major European indices, the German DAX will be in firm focus this week, with the ECB’s rate decision coming up on Thursday. That decision is likely to be a hike, as rising oil prices threaten to re-accelerate inflation.
German DAX Records Meet a Treasury Market Under Strain
The German DAX record high is back in reach after four straight higher sessions, helped by cheaper energy and resilient eurozone data.
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
StoneX Financial Pte. Ltd. is not under any obligation to update this report.
Trading CFDs carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit www.forex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.