DAX lifted by US GDP report

The Germany 30 holds steady after the US revealed a larger-than-expected contraction in first-quarter growth.

The Duitsland 30 is trading at 9940, the market initially dropped after the US growth figure, but traders slipped back into the old habit of treating bad news as good news. Analysts were already anticipating a contraction of 0.6% but in fact it dropped by 1%. The weaker-than-expected gross domestic product figures from the US would suggest the Federal Reserve won’t be in a rush to raise interest rates any time soon.

German banks are leading the market lower; BNP Paribas cut its rating for Commerzbank from outperform to neutral, and the stock is down 2.6%. Deutsche Bank has also lost 0.4% during the session.

As Brenda Kelly stated, the Germany 30 is finding support at 9900, and the likelihood of it reaching 10,000 today is declining. Although, it is encouraging that we haven’t had a major retreat from the record high.

Germany 30 chart

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