DAX slides after Fed statement

The German equity market opened higher after the Federal Reserve’s statement last night but traders have locked in their profits since.

The DAX is trading at 9492, down 0.1%, as the feel-good factor from the Fed’s slightly dovish comments has worn off. The US central bank played down the prospect of interest rates being raised sooner than originally speculated. This boosted US equities, but this morning the statement seems like old news.

France revealed weaker-than-expected inflation figures before the markets opened this morning. This highlights falling consumer demand in the second largest eurozone country. Italy added to the decline in eurozone stocks by announcing a drop in industrial production.

As Alastair McCaig stated, there is still uncertainty in eastern Ukraine and this is prompting a flight to quality assets like gold. If tension continues to flare up between Russia and the west, the index could breach the psychological mark of 9400 with the 200-hour moving average at 9580 acting as resistance.

Germany 30 chart

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