DAX Index 1.80% Higher as Markets Increase Bets for a Brexit Deal
DAX Index started higher the trading session as positive news crossing the wires from the Brexit front. EU’s Donald Tusk said that after PM Boris Johnson met his Irish counterpart Leo Varadkar yesterday, “both saw for the first time a pathway to a deal”. Improved sentiment over the trade negotiations between officials from China and the USA in Washington also lifts German stocks.
The German main stock index has gained over 10% since the August lows and 17,30% in 2019.
Dax index is 1.82% higher at 12,385 having hit the daily low at 12,240 and the daily high at 12,407 boosted by SAP +7.34%, Covestro +3.57, Deutsche Bank AG +3.23%, Daimler AG +2.61%, BASF SE +2.33%, and Infineon +2.30%.
DAX index trades close to daily high as the index builds on positive momentum with a break above the 100-day moving average that happened yesterday. Today’s move enhance the recent positive momentum which started from August 15th lows (11,275) as the index breached the 50-day moving average and the 100-day moving average the last three trading sessions. On the upside, the immediate resistance is at 12,407 today’s high and then at 12,492 the high from October 1st, a convincing break above might drive prices up to yearly highs at 12,653. Bulls will gain momentum if Dax Index returns inside the ascending channel which started back in December 2018. On the downside, immediate support for DAX index stands at 12,240 today’s low, while sellers below that level will target the 50-day moving average at 12,009.
In London the FTSE 100 adding 0.21% at 7,201 as the pound trades at 1.2565, CAC 40 is 1.12% higher at 5,6318. In Wall Street, Dow Jones futures, are 0.91 per cent higher at 26,25, the S&P is 0.1 per cent higher at 2,967 while Nasdaq is 1.0% higher at 7,841.