DAX dips below 9300

The German equity benchmark has dropped below the important 9300 mark after weak producer prices index figures.

The DAX is trading at 9298, down 0.2% as the PPI showed prices declined by 0.3% in March, and analysts were expecting an increase of 0.1%. The eurozone as a whole is struggling with weak demand and this report underlines it.

SAP AG, the largest supplier of business software in the world, is trading at 5652, down 3%, after the firm revealed weaker-than-expected sales and profits. Volkswagen is marginally higher after its European car sales rose by over 10% in March.

There appears to be progress regarding the situation in Ukraine, with representatives from both Ukraine and Russia due to meet in Switzerland today. As I previously mentioned, the eurozone relies on Russian gas, and if tensions remain high we could head towards the 200-day moving average of 9159. If the talks are constructive, the German equity could trade as high as the 200-hour moving average of 9389.

Germany 30 chart

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