The four times that the Germany 30 has risen above 9600 it has failed to maintain the altitude, and instead drifted back down towards the support provided by the 50- and 100-day moving averages.
This time last week optimism had increased that a peaceful resolution to the Russian-Ukraine issue could be found. A week is a long time, however, and disruptions within Ukraine border and the subsequent threats of further sanctions from the G7 nations have seen markets reduce their hopes of a swift resolution.
The German index has had a number of corporate issues to contend with of late. Speculation has increased that Siemens will be encouraged to make steps to take over the struggling French firm Alstom SA and, subsequently, its shares have dropped by 2.25%. More positive news for the index has been Bayer’s announcement of first-quarter figures, coming in with an EBITDA of €2.738 billion as opposed to the expected €2.593 billion.
Even though non-farm payroll figures are due out this Friday, the bank holidays for France, Italy and Germany on 1 May will affect markets. As long as the DAX is able to keep closing above the 9400 level, a renewed attempt to break above 9600 will be anticipated.