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Before the markets opened this morning, the monthly German industrial production figures were released and improved by 0.4% better than the anticipated 0.3%. Although the figures were better than expected, they were still on the meek side and have been unable to boost sentiment in the Germany 30. Both BASF and Bayer AG have been amongst the biggest fallers on the day, both weighing the index down, and only MAN has managed to stay in the blue.
As noted by Brenda Kelly, today’s price action has given technical traders plenty to digest. The bullish run the index had been enjoying from mid-March has spent much of the last week looking like it has run out of steam. This turn in sentiment towards markets could see a retest back down towards the 50-day moving average, currently around the 9465 level.
Brewing in the background is the fundamental issue surrounding Russia’s actions in Crimea, and the increasingly tough stance Angela Merkel is taking over its actions. This weekend saw the German leader very publicly state her agreement with US opinion over events in the Black Sea.