Dax index adds over one per cent on hopes of a coronavirus vaccine. Investors cheered the news of promising results in early-stage human trials from a coronavirus vaccine from Pfizer and BioNTech. Investors shift their attention after better than expected economic data from Europe, China and the USA that point to a fast recovery.
Germany Manufacturing PMI and Retail Sales Beat Forecasts
The Germany Manufacturing PMI registered at 45.2 beating the consensus of 44.6 in June. The Unemployment Rate seasonally adjusted came at 6.4%, below the expectations of 6.6% in June. The Germany Retail Sales came in at 13.9% above the forecasts of 3.9% in May. The yearly reading for the Retail Sales registered in at 3.8% above the expectations of -3.5%.
On the other side of the Atlantic, the U.S. Manufacturing PMI came in at 49.8, above the estimates of 49.6 in June. The Private payrolls rose by 2.369 million in June. The May ADP figures, in a big surprise, revised higher to 3.065 million from a job loss of 2.76 million. The Challenger Job Cuts came in at 170.219K in June below the previous month of 397.016K.
Investors await the U.S. nonfarm payrolls report, with estimates, for an increase of 3,000K in the Nonfarm Payrolls from the previous 2,509K while Unemployment Rate expected to 12.3% from 13.3%.
Dax Technical Analysis
Dax index is 1.88% higher at 12,491, as the index is trading inside the rising trend channel that started since the March lows while the move above the 200-day moving average enhanced the bullish momentum. What can cancel the positive momentum is only a break below the 200-day moving average.
On the upside, first resistance for the Dax index is at 12,516 the daily top. A move above 12,516 might challenge 12,617 the high from June 23. A break above 12,617 would open the way for 12,762 the high from June 10.
On the other hand, the initial support for the Dax 30 stands at 12,370 the daily low. If the Dax index breaks below 12,370, then the next support is at 12,156 the 200-day moving average. Sellers would take control below 12,156, and the next support area will be met at 11,955 the low from June 25.