DAX Index Higher on Better Chinese Manufacturing Data
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.
On the upside where investors focus shifted, the immediate resistance is at 12,937 today’s high, a convincing break above might drive the index up to 12,984 the high from October 28th. Bullish momentum for Dax Index will be intact as long as the index trades inside the ascending channel which started back in December 2018.
On the downside, immediate support for DAX index stands at 12,896 today’s low, while sellers below that level will target the low from October 23rd at 12,700. Next support level for the index stands at the 50-day moving average at 12,344.
In London the FTSE 100 adds 0.22% at 7,264 as the pound trades at 1.2947, CAC 40 is 0.32% higher at 5,748. In Wall Street, Dow Jones futures, are 0.20 per cent higher at 27,036, the S&P 500 is 0.22 per cent higher at 3,042 while Nasdaq is 0.28% higher at 8,112.Download our latest quarterly market outlookfor our longer-term trade ideas.
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