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DAX expected to record further gains on Wednesday

We examine the recent moves from European and US markets, as well as look at where futures markets are implying the DAX will open on Wednesday, 3 June.

DAX technicals, futures and recent moves in focus

Futures markets are suggesting that the DAX will open higher on Wednesday, 3 June. This comes after the German DAX rose an impressive 3.75% or 434 points, to finish out Tuesday’s session at the 12,021 point level.

During Tuesday's session the best performing German equities were MTU Aero Engines, Daimler and BASF; while Henkel vz, Merck and Wirecard were the worst performing equities, though it was only Wirecard which sunk into negative territory.

Looking at the broad index moves from a technical perspective, IG Senior Market Analyst, Joshua Mahony yesterday wrote:

‘The DAX has been consolidating overnight, with the drop into trendline support seemingly sending the index higher.’

Bullishly, Mr Mahony went on to say that:

‘The rise back into the overnight peak signals a potential breakout coming into play, but it makes sense to await a rise through 11,942 to signal the potential beginning of another bullish surge.’

At the time of writing, IG Markets data suggests that the Germany 30 index will open 166 points or 1.39% higher on 3 June.

Other markets at a glance

Elsewhere, key European markets such as the French CAC, the Italian FTSE MIB, and the Swiss SMI all rose on Tuesday.

The Italian benchmark was the standout performer here, rising 2.42%, to finish out the session at the 18,971 point level.

Elsewhere, US equity markets also surged, though by a more moderate degree, as unrest continues to flare across the country.

The Dow Jones Industrial Average rose by 0.75%, the S&P 500 added 0.82% and the Nasdaq Composite gained 0.59%.

looking at the S&P 500 market movers, Western Union, DXC Technology and Equifax were the best performing equities during Tuesday's session, while Tiffany and Co, Coty and Newmont Corporation were the worst performing US stocks.

Futures markets also currently suggest that US markets will open in the green.

Speaking to CNBC and looking at what is driving price action across global markets – Jim Paulsen from Leuthold Group – said:

'Despite several issues of importance – national riots, Chinese relations, an ongoing pandemic – the stock market is primarily focused on a single thing: the restart of U.S. and global economic activities.'

How to trade global markets – long or short

Whichever way you think markets will move, you can trade indices like the DAX, currencies and equities – both up and down – through IG’s trading platform now.

For example, to buy (long) or sell (short) the DAX using CFDs, follow these easy steps:

  1. Create an IG trading account or log in to your existing account
  2. Enter ‘Germany 40’ in the search bar and select it
  3. Choose your position size
  4. Click on ‘buy’ or ‘sell’ in the deal ticket
  5. Confirm the trade

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. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.

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