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The Germany 30 set a new record high this morning before traders decided to take some of their profits off the table. It is now trading at 9915, down 0.2% on the day.
The unexpected rise in German unemployment this morning pushed the Germany 30 above the 9950 level, as traders viewed the bad news as good news. Yesterday I mentioned some traders were predicting the European Central Bank would embark on a policy of monetary easing next month.
The Germany 30 has gained over 3% in the past eight trading sessions, so it no surprise that the market has lost some momentum today and shied away from the 10,000 mark.
As Brenda Kelly stated, yesterday’s low of 9872 could act as support, and we may see further declines before the market targets 10,000.