Monday was quite successful in most of European stocks, French CAC40 +0.56%, English FTSE250 +0.90%. Also all of German indices gained: DAX +0.78%, MDAX +0.80%, SDAX +0.9%, TECDAX +0.81%. 22 out of 30 DAX companies increased, the most Volkswagen +6.22, it is another great session for “das auto”. Big gains also had Infineon +3.16% and Daimler +2.77%. On the other side Vonovia -3.17% and Linde -1.81%. Gains on German stocks happened despite of weak session in the US. Decreases weren’t big, S&P500 -0.46, Nasdaq -0.37%, but still it doesn’t happen very often. German had help in EURUSD weakening, pair hit new low yesterday, but we have to remember that since middle of October there was no correction and many investors expect that in near time.
IF YOU ARE INTERESTED IN INVESTING ON INDICES LIKE DAX30, TRY FREE FXGROW ACCOUNT
We can see improvement of European economy, PMI rose to 54.4 which is the highest level for few years. Also data about German CPI points that ECB work starts bringing some effect. Markets are starting discounting Thursday’s ECB meeting where rate cut and expanding QE program is expected.
The closest resistance on DAX is on 11,650 pts level and for futures at 11,620 pts. Stronger support is at 11,000 pts and intraday ones at 11,150, 11,250 and 11,340 pts.
