DAX hits record high

The Germany 30 has extended its rally to hit a record high in anticipation of monetary easing from the European Central Bank.

The Germany 30 is trading at 9942, up 0.45% on the day even though Mario Draghi claimed he did not see evidence of deflation in the eurozone, contradicting what he stated yesterday about falling prices and weak lending contributing to low growth.

Mr Draghi is not the first central banker to change his tune in a short period, but he has walk to a fine line between managing expectations and subtly letting the market know what he is going to do.

As I stated earlier, victory in the European elections in Germany and Italy has ensured some stability, and hopefully the reforms will not be derailed by the new influx of Eurosceptic MEP’s.

Tomorrow, Germany will announce its import prices and unemployment data, and good results could put us on track to hit 10,000. The index is currently finding support at the 9800 level.

Germany 30 chart

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