DAX futures: German market poised to open flat
‘This is unlikely to be the end of the sell-off, with a bearish wider perspective remaining in place.’
German markets look to be gearing up for a more subdued open today, after the DAX registered a blockbuster day of gains on Tuesday.
As of 4:08 AM (GMT+1), IG Markets data suggests that the DAX is set to open around 29 points or 0.31% lower.
This comes after the German index finished out yesterday’s session a staggering 10.98% or 959 points higher – closing out Tuesday’s session at the 9,700 point mark.
In step with that, some of Germany’s most widely traded equities notched up a blistering set of gains: Daimler skyrocketed 27.28%, Münchener Rückversicherungs-Gesellschaft vaulted 20.17% higher, while Volkswagen and Allianz recorded gains of 19.05% and 15.80%, respectively.
Responding to the early market moves in the DAX on Tuesday, IG’s Senior Market Analyst Joshua Mahony, said:
‘The DAX has managed to tentatively push through the 9197 resistance level this morning, raising the possibility of a continuation of this short-term rebound for the index.’
Though posting impressive intraday gains – against the broader backdrop of volatility and uncertainty – Mr Mahony warned:
‘This is unlikely to be the end of the sell-off, with a bearish wider perspective remaining in place. With that in mind, watch for how we respond to this 9197 level as a gauge of whether this rally ends here or pushes into a more convincing higher high.’
Besides the standout performance from the German benchmark, the French CAC 40, Swiss SMI and Italian FTSE MIB all finished out Tuesday's session well in the green.
The Italian index was the standout performer amongst these three benchmarks, rising 8.93% and finishing out the session at the 16,948 point mark.
Broader afield, US markets soared in anticipation of a US$2 trillion stimulus package – with the Dow Jones and S&P 500 indices climbing 11.37% and 9.38% higher, respectively.
And though the DAX looks set for a shaky start, Asian Pacific markets today touted a set of a robust gains: the ASX 200 maintained its momentum, rising 2.52%; while China’s CSI 300 index pushed 2.21% higher by the afternoon.
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