DAX index continues to make progress for the eighth session in a row adding 0.43% higher at 12,464 after ECB cut its deposit interest rate at -0.50%, and launched a new round of monthly bond purchases. Investors concerns on US-China trade tensions eased after President Trump announced a 2-week delay in tariff hikes in $250 billion in Chinese imports. The German main index has gained over 10% since the August lows.
DAX rally from the August 15th lows is intact as the index makes fresh six week highs in an area that we haven’t seen since July 25th. Positive momentum accelerates as the Dax managed to return inside the ascending channel which started back in December 2018. On the upside, the immediate resistance is at 12,494 today’s high and then at 12,592 the high from July 25th, a convincing break above might drive prices to yearly highs at 12,653. On the downside, immediate support for the DAX index stands at 12,408 today’s low and then at 12,112 the 100-day moving average, while extra bids will emerge at 11,704 the 50-day moving average.
Top performers in DAX is Deutsche Bank AG +3.29%, Covestro AG +3.09, HeidelbergCement AG +2.81% and Thyssenkrupp AG +2.26%.
In London the FTSE 100 adds 0.01% at 7,345, as the pound rallies above 1.24, CAC 40 is 0.30% higher at 5,659. In Wall Street, Dow Jones is 0.24 per cent higher at 27,247, the S&P is 0.13 per cent higher at 3,013 while Nasdaq is 0.05% lower at 8,190.Don’t miss a beat! Follow us on Telegram and Twitter.