The German equity index is trading at 9401, up 0.6%, and is now in the black after the US revealed that the number of people claiming unemployment benefit had increased by 19,000. This figure was greater than estimated, but nevertheless the increase in jobless claims actually boosted equity markets. It suggests that the Fed is unlikely to implement any further tapering to its bond-buying scheme in the near future, which comes as a relief to many traders.
German stocks opened lower this morning, along with the other global equity markets, after the Federal Reserve trimmed the stimulus package by $10 billion last night. The move was in line with market expectations, but a reduction was always likely to have an impact nonetheless. Softer-than-expected jobs data from Germany then kept the DAX in the red throughout the morning.
As Alastair McCaig stated, we are still more than 300 points away from the recent highs. And while we stay above the 50-day moving average we could retest those highs.