Where the DAX is set to open today
We examine where the German markets are expected to open on Friday as well as unpack some of the key market developments from around the globe.
A ‘more bullish view’
As markets across the globe rebound – on revelations of stimulus and hopes of aggressive central bank intervention – the DAX managed to finish out yesterday’s session just over the 10,000 point mark.
All up, over the last four trading sessions the German benchmark has now risen an impressive 920 points or 10.14%.
Even so, as of 1:52 AM (GMT+1), IG Markets data suggests that the German benchmark is poised to open flat on Friday – with the DAX expected to open just 17 points higher or around 0.17%.
Commenting on these market moves, IG’s Chief Market Analyst Chris Beauchamp yesterday wrote:
‘The DAX has surged from the lows of mid-March around 8200. As with the FTSE 100, there has been little in the way of a pullback since Monday, but with the 9160 level breached a more bullish view is in place.’
Mr Beauchamp additionally opined that:
‘Further moves higher target 10,200 and then 11,000. Dips that hold above 8500 would be possible buying opportunities.’
For reference, a month ago the DAX traded around the 12,000 point level.
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What’s driving markets higher
Overall, global markets have bounced strongly this week in response to a flurry of stimulus package announcements as well as suggestions from central banks that they’ll do ‘whatever it takes’ to protect economic growth.
Germany’s Parliament for example this week passed a historic aid package worth approximately €750 billion.
In comparison, the US government is closing in on finalising a historic US$2 trillion dollar stimulus package. After passing this stimulus package bill through the US Senate, CNN noted that expects the US House of Representatives ‘to follow suit Friday.’
Though not finalised, US markets rose strongly on such news, with the Dow Jones Industrial Average, S&P 500 and NASDAQ Composite all trading bullishly yesterday.
Adding to this bullish atmosphere and speaking of the monetary policy measures that the US Fed is prepared to implement, the ABC this week ran a story titled: 'Fed chair Powell says will provide nearly unlimited lending.’
Europe markets at a glance
Activity in European markets was somewhat more subdued yesterday, though positive nonetheless, with the French CAC, Italian FTSE MIB and Swiss SMI all posting gains.
The French benchmark was the best performer here: finishing yesterday’s session up 111 points or 2.51%.
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