The departure of Gary Cohn, one of the main opponents of protectionism around Trump, has revived fears of trade war. There are also rumors that the United States is considering a wide range of tariffs on Chinese imports. However, the effect has been relatively modest in Asia where the response to the potential US protectionist measures has been relatively discreet so far. As mentioned yesterday, trading in a climate of political uncertainty is more risky and volatile, but the effects tend to fade over time. Overall, global growth and strong corporate earnings continue to support risky assets in the longer term.
The DAX will openin a bearish gap and could find a buying support between 12030 and 11980 for a potential rebound to 12115, then 12280 in case of break above. Below 11980, consider a continuation of the decline to 11950 then 11875.
Support: 12033 (50% Fibonacci), 11980 (61.8% Fibonacci), 11950
Resistance: 12115 (yesterday close), 12285, 12370