DAX Index is among the worst-performing indices in Europe today. It is down by more than 3%, which is worse than the FTSE 100 2.70% decline and FTSE MIB’s 2.76% decline. The only index near to the DAX is France CAC. The selloff in Europe and Asia is mostly because of the dovish statement issued by the Federal Reserve yesterday.
All DAX components in the red
All companies in the DAX index are in the red today. The worst-performer is Lufthansa, the company which recently received a large bailout from the government. It is about to be removed from the DAX. Shares dropped by more than 8%. It was followed by Continental, the auto supplier, which recently slashed its dividend. Other big losers in the DAX were Daimler, Infineon, MTU Aero, and Siemens. Automakers Volkswagen and BMW also declined sharply.
On the other hand, the best-performing German stocks in the DAX are Vonovia, Beiersdorf, Fresenius, Linde, and Henkel.
The DAX index is also trading lower after the OECD released a sharp report saying that the global economy will slide by more than 9% this year.
Adidas shares fall as race issues remain
Adidas share price declined by more than 3% as investors remained concerned about its American business. This is after the company struggled to respond to the increasing race tensions in the US. According to the Financial Times, the company was caught off-guard by demands of antiracism of its own. This is at a time when Nike, its biggest competitor has embraced the race message.
This week, the company announced that it would invest more money in black neighbourhoods and fill at least 30% of its US jobs with minorities. The firm will also increase its investments in scholarships to minorities and increase its financial pledge to social justice courses to $120 million.
Adidas share price is trading at €241.
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DAX Index technical outlook
The DAX index is down for the third straight day as investors worry about global growth. The index is trading at €12,190, which is significantly below this week’s high of $12,919 when the index formed a hanging man pattern. On the daily chart, the price has now formed a three black crows pattern, which is a signal that the downward trend will continue as bears attempt to test the important psychological level of €12,000 and even the 61.8% retracement at €11,596.
On the flip side, a close above today’s open of €12,492 will invalidate the black crows pattern. It will mean that there are more buyers who will be keen to push it higher.
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