DAX futures: German market set to open flat on Wednesday
After rebounding significantly from recent lows, we examine where the German DAX is set to open on Wednesday, 8 April.
Though the German benchmark rose some 281 points yesterday – the DAX looks poised for a soft open today.
The DAX has now rebounded more than 20% from the lows it recorded in mid-March – closing out Tuesday’s session at the 10,356 point level. This comes as global markets rally off the back of news that the spread of the Coronavirus has slowed somewhat. Even so, at the time of writing, the global coronavirus case count stood at 1,431,951.
Looking forward, as of 6:51 AM (GMT+2), IG Markets data suggests that the DAX will open some 34 points or 0.33% higher.
Second, from a technical perspective, IG’s Chief Market Analyst, Chris Beauchamp, yesterday wrote:
‘For the DAX, dips to 9400 have provided support, while it has been unable to move above 10,100. The bounce from the low of the range now needs to clear resistance at 10,100 to provide a clearer uptrend, or it will risk a drop back towards 9400.’
Mr Beauchamp finished by saying:
‘Once 10,100 and 10,200 are cleared, 11,100 becomes the next major target to the upside. A deeper drawdown requires a move back below 9400.’
Global market moves at a glance
Besides bullish price action across German markets, other European indices such as the Italian FTSE MIB, the Swiss SMI and the French CAC – all rose higher on Tuesday.
The Italian benchmark was the standout performer here, rising 2.19% to finish out the session at the 17,411 point level.
By comparison, American markets struggled yesterday, with the Dow Jones Industrial Average, the S&P 500 and the NASDAQ Composite all finishing out the session lower.
Commenting on the broader outlook for US equity markets, Goldman Sachs Chief Equity Strategist David Kostin yesterday told CNBC that:
‘Risk to the downside is greater than the opportunity to the upside from this point where we stand today.’
The Goldman strategist finished by reminding investors that ‘in 2008 in the fourth quarter there were many different rallies, I call them bear market rallies, some of which almost 20% a couple of times — but the market did not bottom until March of 2009.’
How to trade global markets – long or short
What do you make of the current situation: is what we’re witnessing right now simply a ‘bear rally’ as Mr Kostin puts it, or is it the real deal? Whatever your view, you can trade indices, currencies and equities – both up and down – through IG’s trading platform now.
For example, to buy (long) or sell (short) the DAX using CFDs, follow these easy steps:
- Create an IG trading account or log in to your existing account
- Enter ‘Germany 30’ or ‘DAX’ in the search bar and select it
- Choose your position size
- Click on ‘buy’ or ‘sell’ in the deal ticket
- Confirm the trade
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