DAX dips after ZEW report

The Germany 30 dropped briefly but has quickly made regains, and is now in positive territory despite the soft ZEW report.

A man next to a DAX board
Source: Bloomberg

The Duitsland 30 is trading at 9952, still up 0.5% on the day after Germany revealed a surprise drop in investment sentiment, and the ZEW confidence report dropped to 29.8 in June after a reading of 33.1 in May. It is not a positive sign when investor confidence drops so soon after an interest rate reduction by the European Central Bank. It would suggest that additional monetary is easing will be required in future.

The index has managed to pull back about half of last week’s losses. As stated by Alastair McCaig, traders quickly shied away from 10,000 at the end of last week but confidence is coming back into the market.

The DAX is receiving support at 9900, which is the 50-hour moving average. If it retakes this morning’s high of 9984, it could test the 10,000 mark once again. 

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