DAX Index (INDEXDB: DAX) is once again surging after a major pullback in March 2023. The benchmark index is currently 8.6% up from its March lows and has hit fresh yearly highs. This also means the highest level for the German blue-chip index in the past 12 months.
On Wednesday, DAX Index gained 54 points and was up 0.34% till press time. FTSE 100 index also remained green today and surged to its highest level in four weeks. The positive price action in European equities comes on a day when markets await the US inflation data.
Mining Stocks Boost DAX Index
DAX tracks the stocks of 40 blue-chip German companies which trade on the Frankfurt Stock Exchange. The recent surge in the total return index can be attributed to the positive price action in the stocks of European mining companies. The mining stocks led by 3.6% today, and the Autos and construction stocks also joined the rally to boost DAX Index.
Although the markets remain green till today’s London session, the price action may reverse once the US CPI data gets released. A significant increase in inflation during March 2023 will put more rate hikes on the table. However, decreasing inflation might make the US Federal Reserve pivot in its next FOMC meeting.
DAX Index On Track To Make New All-Time High
The daily chart of INDEXDB: DAX shows that the benchmark of German equities has constantly been making higher highs and higher lows since September 2022. A break above the 15,700 level can send the index to its new all-time high in 2023. This will make DAX the only major global index to make new ATH this year.
There is also a chance that the index gets rejected from its current level. Today’s CPI report might play a key role in this regard together with the IMF/World Bank spring meetings. In case of a rejection, the key level to watch will be the 14,000-13,900 region, where lies the 200-day moving average.
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