Monday’s session ended much worse that we could expected. Traders counted on “windows dressing” in the end of quarter. They were ready for bullish reaction. However that didn’t happened and on Monday almost every European index lost some value. FTSE100 -2.46%, CAC40 -2.76%, CRUDE OIL -2.76%, SILVER -3.78%, also American indices disappointed: NASDAQ -3.04$, S&P500 -2.57%.
The reason of decreases is China. Companies profits decreased in August by 8.8% after 2.9% drop month earlier. This is the strongest singular drop of this indicator in history and fears about global economy are coming back. All German indices lost some value: DAX -2.12%, MDAX -1.68%, SDAX -1.36%, TECDAX -1.31%. 29 out of 30 DAX companies decreased, the most Volkswagen -8.08% and Deutsche Bank -4.44%. Only Beiersdorf gained +1.68%.
Tuesday’s DAX Futures started with 1.5% decrease after Asian session, where all of the most important indices dropped. DAX is in important area near August bottom. Another support is at 9,130 and current level is below long term bullish trend.