DAX futures: German index poised to open lower
DailyFx Analyst Justin McQueen warns that ‘recoveries in the index are likely to be shallow as the spread of coronavirus shows little signs of easing up.’
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DAX futures suggest market will open lower
In response to the unfolding coronavirus crisis – the European Central Bank (ECB) late yesterday announced a €750 billion ‘Pandemic Emergency Purchase Programme,’ that would centrally involve the purchase of private and public sector securities.
According to the ECB, these emergency measures aim at countering ‘the serious risks to the monetary policy transmission mechanism and the outlook for the euro area posed by the outbreak and escalating diffusion of the coronavirus, COVID-19.’
In response, DAX futures are currently pointing to a sharply lower open for the Germany 30 index, as markets across the globe continue to experience unprecedented levels of volatility, both up and down.
Though DAX futures traded almost 170 points higher a little before midnight, by 4:00 am (GMT+1) futures had turned red, implying that the German market would open around the 8,068 point level – or some 4.59% lower.
This marks another day of implied losses for the DAX, after the Germany 30 benchmark fell 5.56% or 497 points yesterday. Worse still, in the last five days the index has given up close to 1,400 points, finishing out Wednesday’s session at the 8,441 point mark, a level not reached in over five years.
Moreover, and speaking to the depth of coronavirus-led carnage, only three German stocks notched up a positive performance on Wednesday; with the share prices of EON, Henkel vz and Beiersdorf the only stocks registering gains.
All up, the majority of the index suffered steep declines: with the country’s crowning corporate achievement such as Volkswagen falling 11.99%, while Siemens and Daimler dropped 10.01% and 9.32%, respectively.
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Other markets at a glance
Broader afield, volatility continues to wash over UK and US equity markets – with the FTSE, Dow Jones, S&P 500 and NASDAQ all recording heady losses yesterday.
Specifically, the Dow fell 6.3% or 1,338 points; while the UK FTSE recorded slighlty more mild losses of 4.05% or 214 points.
This comes as coronavirus (Covid-19) cases continue to rise rapidly across the globe. At the time of writing, global coronavirus cases stood at 219,217, while deaths from the virus currently stand at 8,965.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
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