DAX dips on EU uncertainty

Ukrainian unrest on the peripheries of the European Union has added to a cloudy picture for the DAX.

Current public unrest in Ukraine will have many worrying over the impact that further integration will have for the EU. At this point in time, the battle between old-school Russian hardliners and the more youthful pro-European movement has seen plenty of blood spilt; overall this is clearly a country that is far from convinced of the benefits on offer from either side.

The Germany 30, like so many of the European equity markets, has begun to wobble as it approaches all-time highs. The EU is still struggling under the lack of inflation, and it appears that any hope that German retail spending can rebalance this has been swiftly discounted.

Looking at the price action, the intraday bounce off of the 50-day moving average last week – and the impressive powers of recovery from its dip earlier in the year – would suggest that at least one fresh re-test of the all-time highs will be seen in the coming weeks.

Germany 30 chart

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