DAX Index Hits All-Time Highs Despite Weak Economic Data
Dax index hits fresh record highs in a quiet trading session as Wall Street is closed today. Dax and stocks indices around the globe boosted today after a monetary stimulus in Chinese struggling economy. Recent economic data from Germany failed to impress investors. On Friday the German economy avoided contraction in the fourth quarter of 2019 but still in a vulnerable position. Investors worry now that the coronavirus will impact the fragile economy in the first quarter of 2020. The industrial production in Germany dropped 3.5% in December, plunging the most since the global financial crisis.
Bundesbank in its monthly report sees no fundamental change in the German economy in the first quarter of 2020. The Deutsche Bundesbank calls on the German government to loosen fiscal policy in order to support economic growth, warning of new risks to already struggling Germany’s large manufacturing sector from the coronavirus outbreak in China.
Dax index is 0.17% higher at 13767 having hit earlier fresh all-time highs at 13795.24. The index makes higher highs for the fifth consecutive trading session. The technical outlook is positive for the Dax but the fundamentals are not supportive.
On the upside, the first resistance for Dax 30 index stands at 13,795.24 today’s top and an all-time high. A break above might target the 13900 psychological resistance.
On the other side, the initial support for the Dax index stands at 13754 the daily low. In case of a break below would open the way for the next support level at 13576 the low from February 13th. Next support will be met at 13555 the low from February 11.