DAX Index continues lower for the second trading day in thin volumes due to US holiday, as investors await the countermeasures from China after President Trump signed the legislation backing protesters in Hong Kong. The U.S. plans a new round of tariffs on Chinese goods on December 15.
On the data front the Germany Unemployment Change came in at -16K, below forecasts of 5K in November. The adjusted unemployment rate remained at 5.0%. On the other hand, we have a big miss as the Germany Retail Sales (month over month) came in at -1.9% below forecasts of 0% for October, the yearly reading came in at 0.8% also below expectations of 1.1%.
Recent economic data shows that the German economy might leave the worst behind after the stronger manufacturing PMI reading the previous week. Last week the new ECB President, Christine Lagarde in an interview, asked eurozone governments to boost local demand as a long trade war weigh on global economic growth.
Dax 30 index gives up 27.86 points or 0.19% at 13,219 today as the correction from recent high continues without reversing the bullish momentum as it trades above all significant daily moving averages and the DAX price holds inside the ascending channel which started back in December 2018. The recent correction helped the Dax index to exit from the overbought area at 62.74 according to the daily RSI 14 index.
Dax index will find first support at 13,165 today’s low, while the ascending trendline crossing at 13,132 would provide some extra bids. If there is a downside break below the ascending trendline, bears will target the next support at 50-day moving average around 12,774.
On the upside, immediate resistance will be met at 13,235 the daily top while a convincing move above that level might drive the Dax index to yearly highs at 13,375.
In London the FTSE 100 is 0.16% lower at 7,404 as the pound US dollar exchange rate is at 1.2892, CAC 40 is 0.02% higher at 5,913. In Wall Street, Dow Jones futures, are 0.21 per cent lower at 28,089, the S&P 500 is 0.21 per cent lower at 3,147 while Nasdaq is 0.29% lower at 8,430. Stocks in Asia ended firmly lower with Hang Seng outperforming its peers losing over 2 per cent at 26,346, while the Nikkei ended 0.49 per cent lower at 23,293.More content