DAX futures: index set to open in the green
We examine where DAX futures suggest the German index will open today.
What DAX futures are telling us
Prior to the market open, DAX futures are suggesting that the Germany 30 index will open in the green.
Specifically, at around 6.12 am (GMT+1), DAX futures were 300.5 points higher, or 3.50%; implying that the Germany 30 would open at around the 8,829 point level.
This follows a horror day for stock markets across the globe: Yesterday, the ASX 200 recorded its worst intraday decline in history, falling 9.37% or 537 points. In the US, the Dow Jones fell close to 3,000 points, while the S&P 500 collapsed 11.98%.
In saying that, like the DAX, US futures are pointing towards a strong open today.
All up, in the last month the DAX has fallen significantly amidst growing concerns regarding the spread of the coronavirus (covid-19) and its hard-to-quantify economic impact. In that period the German index has dropped approximately 33% or ~4,500 points.
Yesterday alone the blue-chip German benchmark fell 5.31%, even as central banks across the globe announced a string of emergency measures to salvage economic growth.
The analyst perspective
Speaking of the current price action from a technical perspective – for both the DAX 30 and the CAC 40 – DailyFX Strategist, Paul Robinson, yesterday said:
‘As far as the technical picture is concerned, it’s a secondary thought in these times. Rarely as a technical-minded analyst do I say something of this nature. The extreme negative sentiment and panic is usually a sign that the market is nearing a bottom. But at what point is that extreme met with exhaustion in selling is becoming an almost impossible question to answer.’
Moreover, even though DAX futures currently sit in the green, yesterday DailyFX Analyst Dimitri Zabelin said:
‘The German DAX equity index has plummeted over 30 percent and is now trading at 2016-lows after erased four years’ worth of gains in just under three weeks. It may now look to test six-year low support at 8730.850. If broken, this could amplify bearish sentiment and lead to further losses of unprecedented magnitude as markets continue to be embroiled in financial turmoil from the coronavirus.’
On a more granular level, some of the DAX’s most prominent blue-chip stocks have faced severe selling pressure in the last month. The software company SAP has seen its share price decline 29.54%, the Siemens share price has dropped 38% and Bayer has come off ~36%.
Interested in trading the DAX? Click here now to create an IG Trading Account and get started today.
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. See full non-independent research disclaimer and quarterly summary.
Act on share opportunities today
Go long or short on thousands of international stocks with spread bets and CFDs.
- Get full exposure for a comparatively small deposit
- Trade on spreads from just 0.1%
- Get greater order book visibility with direct market access
See opportunity on a stock?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See opportunity on a stock?
Don’t miss your chance – upgrade to a live account to take advantage.
- Trade a huge range of popular stocks
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See opportunity on a stock?
Don’t miss your chance. Log in to take advantage while conditions prevail.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
