DAX lifted by pharma stocks

The German equity market has been given a boost by talk of takeovers in the pharmaceutical sector.

The DAX is trading at 9550, up 0.8% on the day, as a flurry of merger and acquisition news from the pharmaceutical industry has driven the overall market higher.

There is speculation that Pfizer is launching a £60 billion takeover of AstraZeneca, while GlaxoSmithKline is selling its oncology unit to Novartis, and will buy its animal health care division.

Even though none of the companies mentioned above are listed on the German exchange, the corporate activity has pushed pharmaceutical stocks of Merck KGaA and Bayer AG higher, 2.5% and 3.2% respectively.

In recent months, the DAX has found it difficult to hold ground above the 9600 level, and the unrest in Ukraine has put pressure on Germany equities. As I previously stated, the west and Moscow are trying to find a political solution but if hostilities escalate in Ukraine, we could retreat to the 100-day moving average of 9462.

Germany 30 chart

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