Established in 1974
185,800 clients worldwide
Over 15,000 markets

DAX drift continues

Retail trading sentiment over the DAX is evenly divided.

There is a scarcity of economic data due out today, and client sentiment is undecided. The DAX has dropped over 300 points so far this month (as of mid-morning) and will need to show some real resilience if it is to have any sort of seasonal rally. IG clients are currently 51% short of the German index; a sentiment that has been prevalent throughout the month.

The biggest issues to negatively affect Germany remain outside their own borders. Worries over France’s ability to keep on the right side of the recovery/recession divide continue to hover over the EU and, regardless of how positive European Central Bank president Mario Draghi’s outlook might be, the figures don’t lie.

The broader economic picture will also become a lot clearer in the coming days, as soundbites from both Democrats and Republicans over the US budget could give reason to believe that an agreement may be reached ahead of the next deadline. In the coming days the US Federal Reserve will announce whether it will reduce the current debt purchasing scheme or wait until some time in the new year.

Until these bigger US issues have been resolved, any stance taken on the German index should be done with the mindset that they are then likely to trigger a noticeable move in the markets. In the meantime any short-term break below the 9060 level could signal further falls.

Germany client sentiment and trading activity

The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.