DAX poised for a strong start to Friday’s session

We examine what’s driving bullish market sentiment as well as where IG Markets data suggests the German DAX will open on Friday, 17 April.

Signs of optimism emerge

Key US indices put in a solid session yesterday, with the Dow Jones Industrial Average, the S&P 500 and the NASDAQ Composite all finishing out the session in the green.

Much of this optimism looks to be driven by news that a Covid-19 drug developed by US-based biotech Gilead Sciences had shown early signs of success, with a number of patients being treated with the experimental drug seeing rapid signs of recovery.

In response to this news, MarketWatch sensationally wrote:

‘Gilead stock pops in after-hours trading; experimental drug remdesivir is considered a front-runner in the race to develop a treatment for COVID-19 infections.’

The Gilead share price did indeed ‘pop’ in after-hours trade, rising as much as 16.41% – to ~US$89 per share, off the back of this news.

According to Bloomberg Data, Dow futures are currently pointing to a positive open.

DAX also set to surge

Off the back of these developments, as of 5:59 AM (GMT+2), IG Markets data is suggesting that the German DAX will open some 240 points or 2.33% higher on Friday, 17 April.

Yesterday though, the DAX proved more sluggish, rising just 0.21%, to finish out the session at the 10,301 point level, taking the German benchmark’s gains over the last month to around 17.84%.

Amongst that middling session, the best performing German equities were Deutsche Borse, Fresenius Medical Care and Merck; while MTU Aero Engines, HeidelbergCement and Allianz were the worst performing.

Commenting on these market moves from a technical perspective, IG’s Senior Market Analyst, Joshua Mahony, yesterday posited that:

‘A break below that 10,152 level would bring about a more bearish picture into play. Given that depth of yesterday's decline, there is a possibility that this is going to be a retracement move before we turn lower.’

Elsewhere, DailyFx Strategist Paul Robinson, said:

‘But for now, as long as the DAX stays above the lower trend-line then the trend still remains pointed upward in the near-term, and could still bring gap-fills over 11k into play on further strength. A resolution one way or another appears to be nearing.’

Global markets in focus

Besides the German DAX, other European markets notched up a middling session on Thursday, with the Italian FTSE MIB gaining just 0.29%, the Swiss SMI rising 1.28%, while the French CAC fell 0.08%.

When Asian Pacific markets opened this morning they look to have benefitted from the optimism swirling around Gilead’s experimental Covid-19 drug, with the Australian ASX 200, the Chinese China A50 and the Japanese Nikkei 225 all rising.

Practise trading indices like the DAX, currencies and equities with an IG demo account now. Click here to find out how.


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.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access

See opportunity on a stock?

Don’t miss your chance. Try a risk-free trade in your demo account, and find out whether your hunch could have paid off.

  • Log in to your demo
  • Try a risk-free trade
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance. Upgrade to a live account to take advantage.

  • Trade a wide range of popular global stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform, when it matters

See opportunity on a stock?

Don’t miss your chance. Log in to take advantage while conditions prevail.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Sell
Buy
-
-
-
-
-
-
-
-
-
-
Sell
Buy
Sell
Buy
-
-
China 300
-
-

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.


For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of spread betting and CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% 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.