Monday, 21 August 2017

What’s next? – DAX 21.08.17

Posted by Valentine at 12:06 Labels:

DAX

The DAX futures traded 0.53 percent lower at 12,104.0 points as of 07:50 GMT on Monday, as market participants opted for a risk-off positioning in the light of Spain’s multiple terrorist attacks and as a light day for economic data did not serve as a good stimulus.

On Friday, European stocks remained under pressure following two tragic terrorist attacks in Spain that left fourteen dead and more than a hundred injured, few of them in critical stage.

The Spanish government decided to leave the terrorist threat alert in level 4 as experts consider there is no chances of an “imminent attack” in the near term. Chief of Mossos d’Esquadra (Barcelona’s police) said the terrorist group behind these attacks has been “deactivated”.

German stocks were dragged into red territory on Friday, with media, technology and construction leading other sectors to the downside.

The best performers were Muench. Rueckvers., which added 1.30 percent to 178.70, followed by RWE rising 0.83 percent to 20.605 and Commerzbank up 0.51 percent to 10.935.

Looking at the other side, Merck dropped 1.89 percent to 91.01, Fresenius SE & Co eased 1.43 percent to 68.700 and Adidas was down 1.30 percent to 189.25.

Ahead this week, attention will be directed to the Jackson Hole symposium in the United States. While traders do not expect any comments from ECB President Mario Draghi concerning monetary policy measures, any sign of a hawkish rhetoric could have strong effects in the DAX.

Last week, we’ve seen a slight recovery of the German benchmark in the first part of the week, but afterwards gains were given back. The index remains dangerously close to the 12,000 psychological level, which does offer considerable report but it is not really unbreakable.

A break below the 12,000 could open the doors to a downward extension to the 11,500 mark. In case of a recovery, the 12,250 points seem to be a reachable target.

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