Till noon DAX was still around Monday’s close, but strong bullish move of EURUSD caused index decrease below 8,800 pts. In media news about uncertain situation of banks showed up, especially about the biggest German bank – Deutsche Bank. Situation is really serious, yesterday company released announcement that DB will not have any problems with paying off their creditors. It’s not enough because investors remember last financial crisis caused by fall of Lehman Brothers. In 2015 Deutsche Bank was 11th biggest bank in the world. Eventual fill of this big institution would have worse impact than what happened after Lehman Brothers bankruptcy.
Tuesday’s session ended in red zone in Europe. English FTSE100 -1,00%, French CAC40 -1,69%, German DAX -1,11%. 25 out of 30 DAX companies lost some value, the most Commerzbank -4.35%, Deutsche Bank -4.27%, RWE -4.48%,E.ON -3.71%. We could see slightly gains of 5 companies, the leader was Deutsche Telecom +1.01%. Meanwhile on Wall Street session was much better but still with decreases: S&P500 -0.07%, NASDAQ -0.35%.
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On Wednesday there will be one of the most important events of the month which is FED president report. One sentence of Janet Yellen can change sentiment of the markets. On DAX future chart we can see broken 8,900 pts support and for now there was just small break of this level. The closest support is in 8,700 pts area, and the closest resistance is 9,000 pts.
