DAX higher despite Commerzbank’s poor morning

The morning has seen Commerzbank AG peg back gains on the Germany 30.

A scarcity of European economic data has allowed European indices to creep higher unhindered. The worries that have hung over the markets, as political wrangling continues in Ukraine, are becoming increasingly factored in.

The Germany 30 has been broadly positive, however Commerzbank AG has rather spoiled the picture as it has sat off by almost 2.25% all morning. For their part, both Infineon Technologies and Deutsche Lufthansa have dragged the index higher.

Column inches are still being dominated by discussions over the viability of Siemens interest and ability to mount a takeover of French company Alstom. Although this is popular with both the French and German governments, it has considerably less appeal to the German company. If or when General Electric conclude its takeover of Siemens, its share price should see the benefits.

The last couple of months saw the DAX post increasingly higher lows, while still seeing the increasingly lower highs from the beginning of the year. Over the next couple of weeks this situation will come to a head, and this timeline could coincide with the European Central Bank finally taking some action to weaken the euro. If Mario Draghi does move then this could see the lid being lifted on the export driven Germany 30.

Germany 30 chart

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