DAX expected to record further gains on Wednesday
We examine the recent moves from European and US markets, as well as look at where futures markets are implying the DAX will open on Wednesday, 3 June.
DAX technicals, futures and recent moves in focus
Futures markets are suggesting that the DAX will open higher on Wednesday, 3 June. This comes after the German DAX rose an impressive 3.75% or 434 points, to finish out Tuesday’s session at the 12,021 point level.
During Tuesday's session the best performing German equities were MTU Aero Engines, Daimler and BASF; while Henkel vz, Merck and Wirecard were the worst performing equities, though it was only Wirecard which sunk into negative territory.
Looking at the broad index moves from a technical perspective, IG Senior Market Analyst, Joshua Mahony yesterday wrote:
‘The DAX has been consolidating overnight, with the drop into trendline support seemingly sending the index higher.’
Bullishly, Mr Mahony went on to say that:
‘The rise back into the overnight peak signals a potential breakout coming into play, but it makes sense to await a rise through 11,942 to signal the potential beginning of another bullish surge.’
At the time of writing, IG Markets data suggests that the Germany 30 index will open 166 points or 1.39% higher on 3 June.
Other markets at a glance
Elsewhere, key European markets such as the French CAC, the Italian FTSE MIB, and the Swiss SMI all rose on Tuesday.
The Italian benchmark was the standout performer here, rising 2.42%, to finish out the session at the 18,971 point level.
Elsewhere, US equity markets also surged, though by a more moderate degree, as unrest continues to flare across the country.
The Dow Jones Industrial Average rose by 0.75%, the S&P 500 added 0.82% and the Nasdaq Composite gained 0.59%.
looking at the S&P 500 market movers, Western Union, DXC Technology and Equifax were the best performing equities during Tuesday's session, while Tiffany and Co, Coty and Newmont Corporation were the worst performing US stocks.
Futures markets also currently suggest that US markets will open in the green.
Speaking to CNBC and looking at what is driving price action across global markets – Jim Paulsen from Leuthold Group – said:
'Despite several issues of importance – national riots, Chinese relations, an ongoing pandemic – the stock market is primarily focused on a single thing: the restart of U.S. and global economic activities.'
How to trade global markets – long or short
Whichever way you think markets will move, you can trade indices like the DAX, currencies and equities – both up and down – through IG’s 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.