Dax index started lower on Monday as the headlines dominated by a rising number of coronavirus infections in China and USA. A partial lockdown has imposed in Beijing open markets while Tokyo also reported 47 new infections the highest number in a month. A second wave might halt the reopening of the economies and could derail the fast recovery after the coronavirus outbreak.
Today’s economic data from China didn’t help investors. The China Fixed Asset Investment fell -6.3%, below the estimates of -5.9% and a drop of 10.3% in April. The Industrial Production came in at 4.4%, below the forecasts of 5% in May. The Retail Sales registered in at -2.8% below the expectations of -2%.
Deutsche Bank experienced heavy losses in the early morning; as of now are 3.38% lower at 8.01. Lufthansa is -3.58% at 10.13, Daimler is -3.03% lower at 34.96, Deutsche Post is -3.18% at 29.27, Allianz -2.66% at 173.22 and Siemens is 3.16% at 95.45.
Dax index is 2.86% lower at 11,615, as the index approaches fast the 100-day moving average. The sell-off accelerates after the index breached on Thursday below the 200-day moving average. Now the technical picture id negative fr the short term while a break below the 100-day moving average would attract more bears to join the action.
On the downside, minor support for the Dax index stands at 11,602 the daily low. If the Dax index breaks lower, then the next support is at 11,445 the 100-day moving average. Below 11,445 the next support area will be met at 11,013 the 50-day low from May 25.
On the other hand, initial resistance for the Dax index is at 11,685 the daily high. A move above 11,685 would target 12,139 the 200-day moving average. A break higher will bring back the bulls in control with a target at 12,297 the high from June 11 trading session.