DAX index Surrenders Yesterday’s Gains as Italy Heading for Snap Elections

DAX index trading 1.10% lower at 11,723 as investor’s turn cautious after the US administration is delaying a decision on whether to allow U.S. companies to do business with Huawei, while the weakness of Yuan continues as PB of China set the yuan (USDCNH) fixing above the 7.00 level for the second day in a row. Poltical turmoil in Italy also weighs on traders sentiment as Prime Minister Salvini aiming to snap election on October 13. DAX index trades close to two month lows, dragged by Thyssenkrupp AG -3.19%, Continental AG -2.5%. and Deutsche Post AG -2.9%. On the other hand, Bayer AG is 3.10% higher while Merck KGaA is 0.49% higher.

InvestingCube's S&R Levels

NAS100

NAS100 (11447.2)

Waiting for a Breakout

BUY

SELL

TP1

12000

TP2

Recent disappointing macro news support a dovish tone from ECB as poor economic data may push the European Central Bank to proceed with further stimulus to support the EU economy in September.

DAX negative momentum is intact after the index broke below the 12,000 mark and the 100 day moving average. Immediate support for the DAX index stands at 11,643 the 200 day moving average while extra bids will emerge at 11,000 round figure.  On the upside immediate resistance stands at 11,766 yesterday high and then at 12,095 the 100 day moving average.

In London the FTSE 100 outperforms its European peers as it gives up 0.10% at 7,278, while CAC 40 is 0.98% lower at 5,335. In Wall Street, the futures also trading lower, the Dow futures are 0.63 percent lower at 26,200 while the S&P futures are 0.72 percent lower at 2,919 and the Nasdaq is 0.94% lower at 7,663, signaling a negative start for U.S. equities.Don’t miss a beat! Follow us on Telegram and Twitter.

Download our latest quarterly market outlook for our longer-term trade ideas.

Do you enjoy reading our updates? Become a member today and access all restricted content. It is free to join.