The German Dax benchmark continues higher adding 0.19 percent at 12,268 as investor sentiment improves ahead of the G20 Summit and dovish stance from Central Banks around the world. President Donald Trump said that a deal with Xi Jinping is possible when the two meet this weekend, but warned that additional tariffs in case of no deal remained an option. Earlier today in Germany the annual CPI increased to 1.6% for June above analysts’ forecast of 1.4%. The Harmonized Index of Consumer Prices matched forecasts at 0.1% for June. Markets expected that interest rates in EU to remain at current levels at least through H1 2020.
DAX trading above all major daily moving averages and the bias is for higher levels. On the upside the first resistance is at 12,431 the high from June 20, while more offers will emerge at 12,590 the high from August 2018.. On the downside the index immediate support stands at 12,135 the 50 day moving average, while 11,826 the 100 day moving average may attract buyer’s attention.