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

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.