After the index dropped more than 400 points over the course of December, DAX traders have finally decided that enough is enough. The bounce on the day is even more impressive when you consider we are only a few days away from the US Federal Reserve’s latest voting decision on its current debt purchasing scheme. Opinion is still mixed as to what, if anything, will be done, but the latest Bloomberg poll has 35% of institutional analysts calling for a December cut. This morning has also seen Goldman Sachs come out with three reasons why the Fed should wait until 2014 before starting to taper.
More directly affecting the German index have been this morning’s economic release, with the manufacturing purchasing managers index (PMI) increasing from 52.7 to 54.2, and the services PMI drifting from 55.7 down to 54. The above-50 growth levels are a good deal better than the contracting French markets.
This morning has seen the DAX rise by 1% and break through the fifty-day moving average, and now has its sights set on the two hundred-hour moving average at the 9112 level.