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As the situation in Ukraine continues to worsen, the rhetoric from both the US and Russia has intensified, leaving traders worried that there will be further consequences to the markets.
Leading the Germany 30 lower is Deutsche Post AG, which has been downgraded by an institutional note out of Commerzbank. Also taking sentiment lower is the widespread speculation that Rheinmetall AG’s proposed sale of 800 ‘Leopard 2’ tanks to Saudi Arabia is set to be cancelled. If true, this would create an €18 billion hole in the company’s sales.
The beginning of April saw the Germany 30’s third attempt of the year to remain above the 9600 level. The index broke through the 50- and 100-day moving averages, and the recent lows of last week marginally avoided breaking the 200-DMA.
As Brenda Kelly pointed out this morning, the index has found good support at the 9220 level, the 50% retracement of last month’s rise.