What’s next? – DAX 13.11.17

The German equity index DAX was pointing lower open in early trading hours on Monday, with market participants struggling for direction in the light of an empty economic agenda.

Ahead in the week, European markets will be focusing on the release of inflation data, as well as a batch of speeches from the European Central Bank, including President Mario Draghi.

No relevant economic data is due for today. DAX futures were trading 0.55 percent lower at 13,125 points as of 06:15 GMT. The Euro Stoxx 50 was also down by 0.66 percent at 3,589.

On Friday, the benchmark closed in red territory, taking a 0.42 percent loss at 13,127.5 points as food & beverages, pharma & healthcare and utilities dragged it to the downside.

The best performers of the session were Deutsche Bank, which added 3.14 percent to 15.460, Adidas rising 3.13 percent to 181.00 and Deutsche Lufthansa up 1.64 percent to 26.915.

The worst performers of the session were Prosiebensat 1 Media, which notched down 3.05 percent to 24.955, RWE falling 2.49 percent to 22.475 and Merck easing 1.88 percent to 89.79.

Despite previous solid economic data from Germany, the index hasn’t been able to break above the 13,200 mark, which is currently serving as a strong resistance.

It seems unlikely a break below the 13,100 level, especially given the lack of economic events. Draghi’s speech does not seem very promising either.

Investors are expected to closely monitor Wall Street’s dynamic in relation to the tax reform bill currently discussed by the Republican Senate. Expectations on the issue have the power to support or end the rally in US stock markets and that could affect the DAX somehow.

Fort Financial Services