Dax index opens higher as China and the USA will return to the negotiations table with a teleconference between high-level officials to discuss the progress of the face one deal that signed back in January.
On the corporate earnings news, Allianz reported a 29% drop in profits but beat the consensus estimates. Commerzbank AG net profit for the second quarter fell 21% to 220 million euro and guided for a full year loses. Hannover Re net profit fell 39% in the first half of 2020 to 402.4 million euro and said that it couldn’t give guidance for the year as provisions continue to rise. Deutsche Post is 2.37% higher at 36.21 after reported better than expected quarterly results. BMW is 2.73% lower at 56.54.
Investors await later today the Services PMI for July after the previous week Germany reported better than expected manufacturing PMI data. Last week said that German GDP contracted by 10.1% in the second quarter. Economists were expecting a drop of -9%. The yearly GDP reading registered down to -11.7%.
Dax Index Daily Analysis
Dax index is 1.10% higher at 12,733 as the index keeps the positive momentum after bears failed to keep the index below the 50-day moving average. Immediate resistance for the Dax index stands at 12,745 the daily high. A break above might challenge 12,945 the top from the July 28 session, which will also signal the return of the index inside the ascending trend channel.
On the flip side, the initial support for the index would be met at 12,659 today’s low. Strong support stands at 12,492 the 50-day moving average. A break below would attract more sellers targeting the 100-day moving average at 12,207.