DAX Index recovers yesterday’s losses today adding 0.28% at 12,902 as investors digest the third interest rate cut by Fed and better factory activity in China which expanded at its fastest pace since February 2017 as the Caixin Manufacturing PMI came in at 51.7, topping expectations of 51 in October and 51.4 reading in September. Yesterday the European Monetary Union Unemployment Rate came in at 7.5%, topping expectations of 7.4% in September. European Monetary Union GDP s.a. (quarter over quarter) came in at 0.2%, also topping forecasts of 0.1% for 3Q. Germany Unemployment Rate registered at 5% in line with forecasts for October, but the unemployment change came in at 6k above the 3k expected.
On the Brexit front, Great Britain heads to general election in December that increases the uncertainty for the short term but might clarify the political situation for 2020.
DAX short term bullish momentum holds well with small daily corrections as the index trades above all major daily moving averages; an attempt to yearly highs looks to be the possible scenario for now. Today’s gains keep the Dax index inside the ascending channel which started in December 2018.