The DAX index is off to a slow start in Tuesday’s European session. Germany’s blue-chip stock index is trading slightly lower at 13,237.40 or around 9 points below its open. This follows after it finished yesterday’s trading flat at 13,246.45.
It would seem that the DAX found some bids yesterday as the German Ifo Climate report topped expectations. However, the index failed to find enough buyers at the wake of the report to take another shot at its historic highs. Ifo warned that despite the positive headline figure, Germany’s manufacturing sector was stuck in a recession.
Daimler led gains when it rallied 1.65%. Meanwhile, Continental and BMW both posted a 1.43% and 0.35% upticks, respectively.
German GfK Consumer Climate
Only the German GfK Consumer Climate report was on today’s calendar from the euro zone. It revealed that German consumers are optimistic about economic conditions with the index printing in-line with expectations at 9.7. The DAX index was little changed following the report.
Markets Cautious On US-China Consensus?
Earlier today, Asian stocks were mixed after reports that the US and China have reached a consensus. Market participants are most likely awaiting comments from US officials to confirm the news which was released by the Chinese Commerce Ministry. With that said, keep tabs on our site for news regarding this matter as it could dictate market sentiment.
If risk appetite picks up as trade negotiations take steps towards the US and China finalizing a phase one deal this 2019, the DAX could rally. A break above its November 19 highs at 13,266.05 would leave 13,590.0 as the next resistance level which is its current historic highs.
On the contrary, risk aversion could trigger a sell-off. A close below 13,050.80, the low for November 21, could mean that the index is on its way to test support at the rising trend line (connecting the lows of August 15 and October 4) around 12,600. This area also coincides with its highs in July 2019.Download our latest quarterly market outlookfor our longer-term trade ideas.
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