The DAX Index is off to a bullish start in today’s European session. Germany’s stock index surged to new record highs at 13,725.84 after opening at 13,671.15. As of this writing, it is up by 0.70%.
German automotive manufacturer, Continental, is leading gains as it is up by 3.71%. BMW and Volkswagen round up the top three stocks this morning with 2.64% and 2.10% gains, respectively.
Investors are in risk-on mode despite the number of confirmed coronavirus cases rising to over 45,200 and the death toll up at 1,116. For one, this could be driven by remarks by a few central bankers who shrugged off the effect of the coronavirus.
Last night, Fed Reserve Chairman Powell and this morning, the RBNZ, both said that it is too early to assess the infections impact to their respective economies. Secondly, investors welcomed China’s report which showed that the rise in the number of cases slowed. There were only 2,015 new cases reported yesterday which is the smallest increase we have seen since January 30. Despite the government announcing that they changed the way they report (only including cases which show respiratory-focused symptoms), risk appetite continued to dominate trading.
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DAX Index Outlook
On the hourly time frame of DAX Index CFDs, we can see that the stock index pared some of its gains after its initial rally. It has room to trade lower to 13,670.0 and still maintain its short-term uptrend. Reversal candles around this price may indicate that the DAX Index could still rally. On the other hand, if buyers are able to sustain gains above 13,700.0, the index could soon tap new record-highs above 13,730.9.