DAX breaks 9300

The German equity market has pulled back some of its losses from yesterday but confidence has not fully recovered.

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. 

Germany 30 chart

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