The DAX index is up slightly as investors remained optimistic about the potential of stimulus in Europe and the US. The index is trading at €12,930, which is a few points above yesterday’s low of €12,780. Other indices in Europe have also risen, with the FTSE 100 and Stoxx 50 gaining by 0.22% and 0.25%.
The DAX index is rising as investors react to a statement by Christine Lagarde about more stimulus. In an interview with the Wall Street Journal, the ECB president said that the bank was committed to support the economy. To achieve this, the bank was ready to cut interest rates further and even expand its quantitative easing program. The ECB could also follow into the footsteps of the Fed and remove the target of its inflation rate.
Meanwhile, data released by the German bureau of statistics showed that the country’s industrial companies had started to slash production. In August, the country’s industrial output dropped by 0.2% after gaining for three consecutive months. The output had gained by 1.4% in the previous month. The slowdown was mostly because of the important automobile sector. Still, industrial production is about 90% of the pre-pandemic levels.
The biggest movers in the DAX index are Covestro, BADF, MTU Aero, Adidas, and Daimler. All these companies have gained by more than 0.67%. On the other hand, the worst-performers are Munich Re, Beiersdorf, Bayer, and Deutsche Boerse. Bayer, the chemical giant has been in trouble after it revealed that it was considering cutting down in its crop sciences division. It also expects to miss its revenue targets this year.
DAX index technical outlook
The DAX index is trading at €12,932. On the daily chart, this price is along the 25-day and 15-day exponential moving averages. Also, we see that the index is moving between the €12,185 support and the €13,340 resistance. The price is above the ascending trendline that is shown in blue. This line connects the lowest levels on May 14, September 25, and October 2.
Therefore, there is a possibility that the index will continue rising as bulls aim for the resistance level at €13340. However, a decline below the 25th Sep low of €12,338 will invalidate this trend.
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DAX Index technical chart
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