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

DAX higher ahead of ECB announcement

The German equity benchmark is up 0.4% as traders await the ECB rate decision.

The DAX is trading at 9584, up 0.4%. Market volatility and trading volumes are expected to be low as traders await the interest rate decision from the European Central Bank at 12.45pm and the ECB press conference at 1.30pm (London times). Interest rates in the eurozone are currently at 0.25%; the consensus is for interest rates to remain unchanged but the press conference could provide us with a clue as to what the ECB is thinking.

In recent months, some economists have been calling on the ECB to tackle its deflation problem. Mario Draghi is in no rush to lower interest rates or begin a stimulus package, however. I feel he will instead continue to claim that deflation is not a problem and that no change in monetary policy is required in the near future.

The DAX has recovered most of the losses it sustained due to the situation in Ukraine, but it has been caught in a range between the 100-hour moving average of 9540 and the 200-HMA of 9590. If Mr Draghi hints at negative interest rates in the future we could see the DAX go above 9600, but we need to see it fill the gap from Friday before we can retest the 9800 mark.

Germany 30 chart

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.

Find articles by analysts