DAX dips below 9300

The German equity benchmark has dropped below the important 9300 mark after weak producer prices index figures.

The DAX is trading at 9298, down 0.2% as the PPI showed prices declined by 0.3% in March, and analysts were expecting an increase of 0.1%. The eurozone as a whole is struggling with weak demand and this report underlines it.

SAP AG, the largest supplier of business software in the world, is trading at 5652, down 3%, after the firm revealed weaker-than-expected sales and profits. Volkswagen is marginally higher after its European car sales rose by over 10% in March.

There appears to be progress regarding the situation in Ukraine, with representatives from both Ukraine and Russia due to meet in Switzerland today. As I previously mentioned, the eurozone relies on Russian gas, and if tensions remain high we could head towards the 200-day moving average of 9159. If the talks are constructive, the German equity could trade as high as the 200-hour moving average of 9389.

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.