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DAX Index Slumps to New Monthly Low on Global Growth Worries

DAX index
DAX index

The DAX index slumps today after the US ISM manufacturing report, published yesterday, came in at 47.8 the lowest level in ten years. The biggest drag on the ISM was new export orders, and this is important for the export-oriented German economy.

As a response, investors have been dumping equities as it appears that the world economy is slowing. Earlier this week the Chinese manufacturing PMI report showed a contraction in Chinese manufacturing while European PMI’s yesterday also showed that manufacturing in the old continent is also contracting.

Top losers in DAX is Covestro AG -4.22, adidas AG -2.64%, Thyssenkrupp AG -1.63%, Continental AG -1.75%, and Infineon -1.72%.

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Dax Index Support and Resistance Levels

Today’s move lower in the DAX index, cancels the recent positive momentum which started from the August 15th low of 11,275 as the index breaks below the 100-day moving average. On the downside, immediate support for DAX index stands at 12,100, today’s low, while sellers could now be targeting the 50-day moving average at 12,034 in order to regain control for the short term and continue the downward move to 11,792, the 200-day moving average.

On the upside, the immediate resistance is at 12,226, today’s high, and then at 12,492, the high from October 1st, a convincing break above might drive prices up to yearly highs at 12,653. Bulls will gain momentum if Dax Index returns inside the ascending channel which started back in December 2018.

In London the FTSE 100 gives up 1.96% at 7,215, as the pound trades at 1.2252,  CAC 40 is 1.60% lower at 5,508. In Wall Street, Dow Jones futures are 0.63 per cent lower at 26,354, the S&P is 0.63 per cent lower at 2,919 while Nasdaq is 0.76% lower at 7,638.Download our latest quarterly market outlook for our longer-term trade ideas.

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