DAX Index Lower Better Manufacturing PMI Failed to Impress
Dax index trades slightly lower giving up 0.07% at 13654 amid the uncertainty the coronavirus outbreak has spread to markets. Earlier today the German Manufacturing PMI surprised investors beating the expectations. The German Manufacturing PMI for February came in at 47.8, surpassing the expectations of 44.8. The PMI signals modest growth of the German economy despite the recent slump in exports. The Germany Services PMI came in at 53.3 below the estimates of 53.8 in February.
The Composite PMI came in at 51.1 above the forecasts of 50.8. But below the headlines there is a warning signal. The Suppliers’ delivery times are increasing due to lower supply probably from China, and not because of much higher demand. If that is the case then the strong figure probably means much bigger problems for the German manufacturing industry.
Dax index slides today, as the correction from the record highs continues for the second day. The technical momentum is positive for the Dax despite the recent correction.
On the downside, the immediate support for the index stands at 13569 the daily low. In case of a break below the next support stands at 13450 the low from February 10th. Next level of support for Dax is the 50-day moving average at 13402.
On the other hand, the first hurdle for Dax index stands at 13,682 today’s high and then at 13795.24 the all-time high. A move above might target the 13900 psychological mark.