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DAX Gives Up Early Gains, Ahead of ECB

DAX Gives Up Early Gains, Ahead of ECB
DAX Gives Up Early Gains, Ahead of ECB

European indices started higher today as investor’s attention turns to ECB decision later. As of writing the DAX Index is 0.05 percent lower at 12,516 giving up all the morning gains. Earlier today a big disappointment came from the Germany IFO Business Climate which came in at 95.7 below expectations of 97.1 in July, the IFO Current Assessment came in at 99.4 also below expectations of 100.4 in July.  The IFO – Expectations came in at 92.2, below expectations of 94 in July. The worse macro news support a dovish tone from ECB as poor economic data may push the European Central Bank to proceed with further stimulus to support the EU economy.

DAX momentum stays positive as the index trading above all major daily averages. The low interest rates environment support equities across the globe. Immediate support for the performance index stands at 12,436 the 20 day moving average while extra bids will emerge at 12,237 the 50 day moving average. On the upside immediate resistance stands at 12,577 daily high and then at 12,640 th high from July 4th.

In Wall Street, the futures trading mixed, the Dow futures are 0.13 percent higher at 27,276 while the S&P futures are 0.04 percent higher at 3,023 and the Nasdaq is 0.18% lower at 8,023, signaling a mixed start for U.S. equities.Don’t miss a beat! Follow us on Twitter.

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