The DAX index is in the red today as investors remain cautious about the new vaccine developed by Russia. The index is trading at €12,908, which is slightly below yesterday’s close of €13,205.
In a statement yesterday, Russia’s president, Vladimir Putin, surprised the world when he unveiled a new coronavirus vaccine. He said that his daughter had taken it. While this was a positive development, scientists are raising questions about the vaccine since it has not been tested. In a statement today, Jens Spahn said that he also doubted the efficiency of the drug. He said:
“It’s not about being first, it’s about having a tried, tested and safe vaccine which will be given — and that’s the important part — to hundreds of millions, maybe even billions of people.”
He also blamed Russian authorities for lack of transparency. He also said that Russian authorities had not done a phase three trial and one among a large group of people. Germany is not the only country raising questions about the vaccine. In a statement yesterday, Dr Fauci said that he doubted whether the vaccine was safe and efficient.
A coronavirus vaccine would be a positive thing for the DAX index because it would remove the current risks in the market. It would also be a positive thing for some German companies like BioNTech that are actively developing the vaccine.
Most companies in the DAX index are in the green today. The best-performing firms are Deutsche Bank, Continental, BMW, Beiersdorf, Allianz, and Volkswagen, that are up by more than 0.50%. On the other hand, the top laggards are MTU Aero, Adidas, Fresenius, and Infineon, which are down by more than 1.5%.
DAX Index technical outlook
The DAX index is trading at €12,908. On the daily chart, the price is above the ascending trend line that is shown in black. This trend line connects the lowest levels in March, May, and July. Also, the price is above the 50-day and 100-day exponential moving averages and slightly below June’s high of €13,315. Therefore, after several days of pressure, it seems like bulls have prevailed, which means that the price will likely continue rising.
On the flip side, a move below €12,190 will invalidate this trend. This price is at the intersection of the ascending trend line and the lowest level on July 12.