DAX index CFDs rose by more than 2% even as the number of Coronavirus cases continued to rise. Germany, the European powerhouse, has confirmed more than 62k cases and more than 8k deaths.
The impacts of the virus are now being seen. Over the weekend, Adidas and Mediakart, two big retailers announced that they won’t pay rent on stores that have been closed. This was against what the country’s economy minister, Olaf Scholtz had urged retailers to do.
Meanwhile, Lufthansa, the national carrier announced that it was placing more than 31k workers on shorter hours until September. This is because the company has continued to fly less since the Coronavirus pandemic started.
At the same time, investors reacted to the sudden news of the death of Thomas Schaefer, the finance minister of Hesse state. In a suicide letter, the minister said that the disease had taken toll on him. His death comes at a time when psychologists are warning of more such actions especially among people who have been laid-off.
Perhaps, investors are hoping that Angela Merkel, who is surging in polls will implement more stimulus to boost the economy. The latest reports suggest that the country is willing to spend as much as €600 billion to aid companies and individuals.
After falling initially, DAX index CFDs recovered and are now up by more than 2%. On the hourly chart, we see that the index fell to an important support of €9,425. As the index rebounded, it formed a hammer pattern, which is a bullish pattern. I expect the index to continue rising today, with the next target being the important resistance level of €10,000.