What’s next? – DAX 18.01.18

The German stock index DAX futures were 0.08 percent higher as of 06:30 GMT at 13,232.5 points on Thursday, with low activity expected in the light of an empty calendar in Europe.

The DAX ended Wednesday’s session at 13,183.96 points, easing -62.37 points or -0.47 percent with Food & Beverages, Utilities and Technology pushing lower, while Basic Resources, Retail and Financial Services limited losses.

The best performers of the session were Vonovia, which added 1.18 percent or 0.48 points at 41.32. Meanwhile, Continental was up by 0.62 percent or 1.50 points to finish at 245.30, while Beiersdorf rose by 0.50 percent or 0.480 points to 97.160.

The worst performers of the session were Volkswagen, which dropped by 1.79 percent or 3.30 points to 180.70. Prosiebensat 1 Media eased 1.59 percent or 0.480 points to 29.640 and Merck was down 1.53 percent or 1.42 points to 91.42.

On Wednesday, the only relevant report released in Europe was Eurozone’s consumer price index for December, which fell in line with expectations for a 0.4 percent monthly increase and a 1.4 percent on yearly basis.

Ahead in today’s session, traders will focus on a speech by Bundesbank’s president Weidmann at 08:00 GMT. Traders will monitor any comments regarding monetary policy. Germany is facing strong pressure from the political context as Angela Merkel’s party is still struggling to form a coalition to govern. If no agreement is reached by this weekend, only two alternatives will be left on the table: reelections or a minority government.

From a technical perspective, the DAX seems to be trading inside a tight channel, with 13,250 and 13,150 limiting its dynamic. A break above 13,250 might take the DAX to 13,500 and higher.

Fort Financial Services