Slowing Virus Lifts Stocks
Fiona Cincotta April 6, 2020 8:06 AM
Stocks jump as coronavirus cases and deaths slow in mainland Europe
Asian markers traded on the front foot overnight and European markets jump higher on the open, whilst safe havens come under pressure as the market mood turns positive.
German factory orders fell by less than forecast also supporting risk sentiment. Factory orders dropped -1.4% month on month in February, versus the -1.9% forecast and the 5.5% print a month earlier. The data will get worse over the coming months before it gets better, but today’s reading is a sign of relief for investors, particularly as the coronavirus outbreak shows signs of easing.
Levels to watch
The DAX has jumped 4% on the open, at 9920. It trades above its 50 and 100 sma on the 4 hour chart, a positive sign. Although it remains with the horizontal channel that it has traded within since 25th March. A break above the upper bound of 10144 is needed for more bulls to jump in. Meanwhile a move below the lower bound of 9328 is needed for another step lower.
Immediate resistance can be seen at 10144, prior to 10645 (200 sma) and 10766 (high 11th March).
On the flip side, support can be seen at 9700 (100 sma) prior to 9328 (channel’s lower bound).
Disclaimer: GAIN Capital UK Limited (trading as "Forex.com") is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, Forex.com does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by Forex.com or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although Forex.com is not specifically prevented from dealing before providing this material, Forex.com does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
For further details see our full non-independent research disclaimer and quarterly summary.