DAX is one of the most popular indexes in the world. It is listed on the Frankfurt Stock Exchange. Virtually every day there is very high volatility which gives many trading opportunities.
Session Summary 18.07.2017
It was quite nervous on the stock markets just before the European Central Bank meeting tomorrow. German DAX index dived yesterday mainly due to Deutsche Bank shares, which lost 2.5%. The Bank is constantly seeking new financing for its business. The falling stock prices of Deutsche Börse, which lost 0.8% yesterday, also weighed on the index. Notabene company managing the German stock exchange. The Deutsche Börse CEO is conducting an investigation into insider trading.
However, for the German index, the ECB’s meeting tomorrow will be more important. Any suggestion suggesting that the bank’s efforts to normalize its monetary policy, or the access to the end of the QE program, could hurt the mood in Frankfurt. Let us recall that the ECB withdrew from the possibility of further rate cuts already at its previous meeting, leaving itself the opportunity to extend the QE program, which is expected to last until 2017. Communication that the bank no longer intends to change in any way QE program can be a strong impetus for the heavily declines German stock market.
The Nikkei ended the day with 0.10%. Yesterday the S&P 500 closed virtually at the same spot and the change was 0.06%. The DAX index fell yesterday by 1.25%. The German index was established on 20 June this year. Historical maxima around 12951 pts. However, he has not been able to stay on this level for too long. The index dived again to a strong support level of 12400 points. At this point, there may be a rebound towards the resistance of 12600 points. In turn, breaking the level of 12400 points will open the way to 12200 points.
The DAX index is currently fighting to break the S1 level around 12540 points, which will open the way to S2 near 12470 points. In turn, exit above the pivot point around 12600 points will move to R1 12660 points.
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