DAX looks to regain momentum

The tail end of last week saw the DAX wipe out all gains from the first two trading days, but it now looks to be trying to regain momentum.

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.   

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.