DAX expected to extend gains following blockbuster Monday session
We examine the recent market moves from the DAX and other global indices, what likely drove this action, and where German markets may head next.
Markets rise, DAX a key performer
Global markets rallied hard on Monday after US-based biotechnology company Moderna reported ‘positive’ early-stage Covid-19 vaccine results and US Fed Chair Jerome Powell said that 'There's a lot more we can do,' 'We've done what we can as we go. But I will say that we're not out of ammunition by a long shot.'
The response from investors, traders and everyone in between was electric: with US and European indices recording strong gains. Asian Pacific markets also rose.
The German DAX was a particularly strong performer here, rising some 5.67% or 593 points, to finish out the session at the 11,058 point mark.
At the height of the Covid-19 sell-off, the DAX fell below 9,000 points.
On a more granular level on Monday, key German equities experienced strong gains: MTU Aero Engines soared 15.66% to €134.80 per share, Daimler rose 11.34%, while Deutsche Bank closed out the top three, rising 10.35% to finish out the session at €6.56 per share.
No members of the DAX 30 fell on Monday.
Looking forward at German economic releases set to take place this week: on Tuesday May data will be released on the ZEW Economic Sentiment Index and on Friday IHS will release its latest round of PMI data, also covering May.
As part of April’s PMI release, IHS Markit's Principal Economist, Phil Smith, said:
‘April’s PMI surveys reveal the full effects of the COVID-19 pandemic and subsequent lockdown on Germany’s economy, showing business activity across manufacturing and services falling at a rate unlike anything that has come before. Compared to a low of 36.3 during the financial crisis, the headline PMI’s reading of 17.1 paints a shocking picture of the pandemic’s impact on businesses.’
IG data currently suggests that the DAX is set to modestly rise on Tuesday, with DAX June futures trading some 43 points or 0.38% higher, at the time of writing.
Other key market moves
Further afield, US markets also rose strongly on Monday: the Dow Jones Industrial average was up 3.85%, the S&P 500 index added 3.15%, and the tech-focused NASDAQ Composite rose 2.44%.
Other key European Markets fared well but couldn’t outpace the gains of the German DAX yesterday. The Swiss SMI climbed 257 points, the Italian FTSE MIB added 549 points and the French CAC gained 220 points.
How to trade financial markets: long and short
What do you make of the current environment: do you see bullish or bearish opportunities? Whatever your opinion, you can trade indices, currencies and equities – both LONG or SHORT – with IG’s world-class trading platform now.
For example, to buy (long) or sell (short) the DAX using CFDs, follow these easy steps:
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
Please see important Research Disclaimer.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.