DAX climbs back above 9000

The German equity benchmark opened lower after Fed fears initially sparked a sell-off, but it is now trading above the important 9000 mark.

Equity indices, including the DAX, began the day in the red after Ben Bernanke of the Federal Reserve kept the $85 billion bond-buying programme in place last night, but also hinted at the possibility that tapering will occur sooner than initially thought.

The DAX remained under pressure this morning when Brussels announced that the level of unemployment in the eurozone remained at a record high of 12.2%. The consensus had been for a decline to 12%. Germany is the strongest economy in the eurozone, and many nations have become dependent on the country, some for financial support and others for trade. So a weak eurozone will drag on German equities.

The 9000 is a psychological level, and while we remain above it, this is a sign that investors are happy to sit on their positions. As Brenda Kelly previously stated, if we move through the 9044 level we could see further gains.

Germany 30 chart

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