DAX shaken by ZEW report

The German equity market has been dragged lower by a weaker-than-expected ZEW report.

The DAX is trading at 9261, down 0.75% after the German ZEW report, which measures the investment confidence of institutional investors, came in at 43.2 below analysts’ expectations of 46.3. The April reading is the fourth consecutive drop in the German ZEW and, given the large drop between March and April, it would suggest that pension funds could be threatened by the situation in Ukraine.

The conflict between Ukrainian security forces and pro-Russian radicals has led to a standoff between Washington DC and Moscow. The west is trying put pressure on Russia by imposing sanctions on the country, wihch could prompt Moscow to reduce the supply of oil and gas to Europe.

The increasing tension in Ukraine is driving stocks lower and, as  Brenda Kelly highlighted, the DAX had found support around the 9220 level. If the index falls below this, we could move towards the 200-day moving average of 9151. The German equity market has dropped over 3.5% since the beginning of April and if tensions fade in Ukraine, we could see some bargain hunting. 

Germany 30 chart

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material 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 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. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research 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 and quarterly summary.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.