Market News & Analysis
DAX eyes fifth weekly gain
Ken Odeluga November 8, 2019 1:06 AM
Germany’s benchmark could use a fifth weekly higher close this Friday
This week’s swings between an over-arching appetite for risk and more aversive sentiment have played havoc with stock markets’ short-term direction. On Thursday at least, equity indices appear to be on an upswing on renewed signs that the long grind towards a trade deal could soon bear its first fruit. In Europe, a pre-eminent beneficiary is Germany’s DAX index. The U.S. is Germany’s biggest trading partner overall, followed by the United Kingdom. China is a top-five export partner of Europe’s growth engine. With Brexit worries beginning to alleviate as trade conflict escalation shows signs of reaching its limits, it’s little wonder that the DAX has begun to outperform large European counterpart markets on a year-to-date basis. Naturally, the obverse of the DAX’s tie to high-level geopolitics is that a reversal of recent improvements on the global front will pose risks to the German benchmark’s rebound.
Quite remarkably, DAX’s advance from late 2018/early 2019 lows is intact. The rough channel over that stretch continues. In the weekly view, the current focus is whether the market can signal readiness to extend its resilient run of four weekly gains with a fifth higher close on Friday. A close above the closest key resistance—circa 13210, a peak in May 2018—would provide a provide a strong basis for upside progress to continue. A failure would add to suggestions that a consolidation may be due.
Germany 30 CFD – Weekly
Source: City Index
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.
Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.
Cryptocurrencies are not legal tender currency and trading of derivatives on Cryptocurrencies are currently not covered under any regulatory regime in Singapore. Consequently, investors should be aware they do not have protection under the Securities and Futures Act (Cap. 289). Please ensure that you are fully aware of the risks.