Dow Jones
Dax index edge higher as coronavirus fears eases after recent data shows that the coronavirus is spreading at a slightly slower pace. Investors also bet that central banks would intervene injecting cash to markets to revive the struggling economy. IMF managing director Kristalina Georgieva, said earlier that expects the Chinese economy will bounce back soon if the disruptions from coronavirus end quickly.
The economic data from Germany are not supporting the rally but the excess liquidity helps risky assets. Yesterday, the February 2020 ZEW economic sentiment survey registered at 8.7 below the expectations of 21.5. Zew Current conditions survey came in at -15.7 below the expectations of -10.3 the last reading was -9.5. ZEW economic sentiment for the Eurozone came in at 10.4 below the last month reading of 25.6.
On the corporate front, Adidas says business activity in China has tanked 85% due to coronavirus from January 25 compared to the same period the previous year.
Read our Best Trading Ideas for 2020.
Dax index is 0.65% higher at 13770 approaching fresh record highs. The technical outlook for the Dax is bullish and higher levels are on the cards despite the weak fundamentals.
On the upside, the first hurdle for Dax index stands at 13,776 today’s high and then at 13795.24 the all-time high. A move above might target the 13900 psychological resistance.
On the flip side, the first support for the index stands at 13710 the daily low. In case of a break below the next support, level stands at 13658 the low from yesterday’s session. Next level to watch is the 13580 the low from February 13th trading session.