has returned to markets. China announced earlier that it would halve tariffs on some $75 billion of imports from the U.S.A starting February 14th. On the coronavirus outbreak front, the number of confirmed coronavirus cases are more than 28,200, with the death toll at 565, there also 1255 patients who have recovered. Investors sentiment lifted yesterday by headlines that there is substantial progress on the coronavirus cure and vaccine. Human trials have begun for Gilead Sciences’ vaccine for the coronavirus also boosted risky assets.
The Factory orders in Germany dropped by 2.1% in December compared to November amid a sharp drop in demand from other nations in the EU. The reduction in December came after a 0.8% decline in November and a slight increase of 0.2% in October. Orders from the other euro-area countries dropped 13.9%. The demand from inside Germany was up 1.4% and orders from other countries rose 2.1%.
Yesterday, the Germany Services PMI came in at 54.2 in line with expectations in January. The Germany PMI Composite came in at 51.2 topping forecasts of 51.1. The disappointment came from the European Monetary Union Retail Sales data that came in at -1.6% below the forecasts of -0.9% in December.
Dax index is 0.58% higher at 13556 as the bulls are in full control pf the trend. The index managed to break yesterday above the 50-day moving average and more buyers stepped in that send the Dax index to clkose up to daily highs.
On the upside, now the immediate resistance for the Dax index stands at 13,606 today’s high. More offers above that resistance might emerge at 13640.06 the all-time highs
On the flip side, the first support will be me at 13536 the daily low. A close below might open the way for the next critical support at 13288 the 50-day moving average. More bids might emerge at 13131 the low from February 4th session. All in all the technical outlook for Dax is clearly bullish and only an escalation in coronavirus and geopolitical risks can cancel the positive momentum.