Yellen spooks DAX

The German index is off 1% as global equity markets are rattled by Janet Yellen’s comments last night.

The DAX is trading at 9185, after last night’s update from Federal Reserve chair Janet Yellen. The Fed is no longer using the US unemployment rate as a benchmark for quantitative easing; instead it is going to use a broader range of indicators. Ms Yellen rattled investors by hinting that interest rates could rise sooner than investors initially thought, and this triggered the selloff in global equity markets.

Adding to Germany’s woes is the situation in Ukraine, the US and EU are in a deadlock with Russia over Crimea. There is a possibility the west will impose economic sanctions on Russia, which could lead to Moscow reducing the amount of natural gas it exports. If tensions between Russia and the west increase, we could see DAX trade lower.

The DAX is currently finding support at the 100-hour moving average of 9174. A move below this could send us on a path towards the 9100 level.

Germany 30 chart

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