DAX breaks through 200-DMA

Sentiment has certainly changed and traders look destined to reduce market exposure ahead of the weekend.

Traders have obviously decided to partially clear the decks ahead of the referendum that is set to take place in Crimea this weekend, as the DAX has broken through the 200-day moving average in today's trading. The politicians have already made their case that they should join Russia and now it is the turn of the voting public.

Historically speaking, Crimea has many ties with Russia, and from a financial point of view Russia is considerably more stable than Ukraine. Developments over the weekend could force many EU politicians into taking sanctions against Russia, rather than just making disapproving comments. With Germany seeing 30% of its energy being provided from Russia via Ukraine, this will be a particularly delicate time for the country and the DAX indices.

At the same time as things are becoming ever more confusing in the Black Sea, as the flow of economic data out of China is becoming less and less impressive. Yesterday’s Chinese industrial production and retail sales both came in well below expectations, and have added to growing fears that the dependence the markets once had for China to prop up demand are no longer there. 

Germany 30 chart

Denna information har sammanställts av IG, ett handelsnamn för IG Markets Limited. Utöver friskrivningen nedan innehåller materialet på denna sida inte ett fastställande av våra handelspriser, eller ett erbjudande om en transaktion i ett finansiellt instrument. IG accepterar inget ansvar för eventuella åtgärder som görs eller inte görs baserat på detta material eller för de följder detta kan få. Inga garantier ges för riktigheten eller fullständigheten av denna information. Någon person som agerar på informationen gör det således på egen risk. Materialet tar inte hänsyn till specifika placeringsmål, ekonomiska situationer och behov av någon specifik person som får ta del av detta. Det har inte upprättats i enlighet med rättsliga krav som ställs för att främja oberoende investeringsanalyser utan skall betraktas som marknadsföringsmaterial.