Recently, the DAX 30 has rarely opened higher and the index has been stuck in its downward spiral that seems to be unending at this point. This time, the index has found a reprieve from the constant downward trend that the index has witnessed particularly because of what the U.S. President commented on during his interview with FOX news.
President Donald Trump has commented in his mentioned interview that there is the potential of a trade deal between the U.S. and China. Commenting that China has “drained” the U.S., this gave the Chinese equities something to smile about, as the Shanghai Composite increased during the Asian trading hours.
This had translated into the opening of the European hours as the German DAX 30 gapped higher on the news as the possibility of this trade deal extending towards the European countries gave the German Index some needed positiveness. However, the current situation with Angela Merkel is causing the water to become murky and undesirable.
Angela Merkel announced that she would be stepping down as the head of the Christian Democratic Union and won’t be going after her fifth term as the German Chancellor. This can be translated into more negativity for the German Economy as a whole as sharks start to circle the chancellor eager to pounce and take the position for themselves.
The DAX 30 has been trying to break above the 11,430-resistance level as it attempted to break above the mentioned level three times so far and all of them have failed with the recent one being just this morning at the opening. On the other side, support for the index is seen a little far away at 11,040 where it also held the index thrice so far. Between those two, the index is giving the illusion of a consolidation pattern forming.
Currently, the best performers on the DAX 30 are Volkswagen (+4.00% at €148.12); Vonovia (+1.02% at €40.53); and Wirecard (+0.83% at €161.38). The worst performers are Lufthansa (-5.90% at €17.72); Beiersdorf (-2.02% at €90.98); and Bayer (-1.44% at €66.90).