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.
The DAX is trading at 9320, up 0.6%, as traders exhibit caution while waiting for news from Crimea. The uncertainty about the likelihood of war has held back the equity market from heading towards the January highs. If conflict were to break out, or even if speculation grows that it may be imminent, we could see the market return towards the 9200 level.
The European Central Bank revealed its plans to stress-test banks operating in the eurozone. There will be 128 banks under review, and making sure all those operating in the region are well capitalised is essential to the survival of the eurozone. In the long term, stress tests are positive for the banks, as they should instil confidence in the eurozone financial system.
As previously stated, the market is finding support around 9260, while the 9395-9400 level is acting as resistance.