DAX Index Slumps Amid Rising Coronavirus Cases in Europe
Dax index started the session with a huge gap down as more coronavirus cases announced in Italy with the number of the confirmed cases now at 195 while there are also four deaths. Officials in Italy have locked down manu towns in North Italy with a population of about 50,000. Italian stocks are over 4.5% lower. Dax index at one point was down over 400 points. Airline, banks and consumer products stocks are among the worse performers. Lufthansa is 6.58% lower at 13.84 while Deutsche Bank is 5.70% lower at 8.98.
The IFO Business survey today came in better than expected. The Germany IFO Business Climate came in at 96.1 topping the forecasts of 95.3 in February. The IFO Business Climate Index registered at 96.1. The IFO Current Assessment came in at 98.9 also above the market’s expectations of 98.6. The IFO Expectations surveys reported at 93.4 beating the forecasts of 92.2.
Dax index is 3.43% lower at 13088 as investors dump risky assets amid the coronavirus spread in Europe. The positive momentum has cancelled today as the index breached below the 50 and 100-day moving averages.
On the downside, the immediate support for the Dax index stands at 13043 the daily low. If the sell-off continues the next support 12962 the low from January 31. Next level of support for is at 12798 the low from October 31st.
On the other side, the first resistance for Dax stands at 13,139 the 100-day moving average while a break above might test the daily top at 13236. A break above might target the 50-day moving average at 13400.