DAX wobbles following Ukraine concerns

Once again, rising uncertainty surrounding Ukraine has driven European markets lower.

As the situation in Ukraine continues to worsen, the rhetoric from both the US and Russia has intensified, leaving traders worried that there will be further consequences to the markets.

Leading the Germany 30 lower is Deutsche Post AG, which has been downgraded by an institutional note out of Commerzbank. Also taking sentiment lower is the widespread speculation that Rheinmetall AG’s proposed sale of 800 ‘Leopard 2’ tanks to Saudi Arabia is set to be cancelled. If true, this would create an €18 billion hole in the company’s sales.

The beginning of April saw the Germany 30’s third attempt of the year to remain above the 9600 level. The index broke through the 50- and 100-day moving averages, and the recent lows of last week marginally avoided breaking the 200-DMA.

As Brenda Kelly pointed out this morning, the index has found good support at the 9220 level, the 50% retracement of last month’s rise. 

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