- Summary:
- The DAX index is rising today as part of the overall rally in global stocks. It is also rising because of the M&A deals and US stimulus talks.
The DAX index is rising today as part of the global rally in equities. The blue-chip German index is up by 0.52% with most of its constituent companies being in the green. Other European, Asian, and American indices are also in the green.
There are several things moving the DAX index today. First, in the United States, there are signs that Donald Trump’s health is improving. While he still has a long way to go, his doctors have assured the public that all of his vitals are doing well. He even took a short-distance drive to greet some of his supporters.
Second, there is a possibility that US politicians will reach a stimulus deal. While talks between leaders have stalled, Nancy Pelosi confirmed that she and Mnuchin had made some progress. Still, with the election just a few weeks away, there is also a possibility that the two sides will not reach a deal. A stimulus in the US will be a good thing for the DAX index because of the volume of business that German automakers do there.
Third, there is a new wave of consolidation in Europe. Over the weekend, it was reported that Nexi and Sia were planning to merge in a deal that will create one of the biggest fintech companies in Europe. In another deal, NEC announced that it would acquire Avaloque, a Swiss payment company. Analysts expect more deal-making to continue.
Automakers are among the best performers in the DAX today. Volkswagen, Daimler, and BMW share prices have all gained 1.65%. Other top-performers are Deutsche Bank, Deutsche Telekom, and BASF. Bayer, the embattled chemicals giant has also gained by more than 1%. On the other hand, Delivery Hero, SAP, and Linde are among the worst performers.
DAX index technical outlook
The daily chart shows that the DAX index has been trading in a narrow range in the past few days. It is trading at €12,762, which is above last week’s low of €12,534. The price is a few points below the 25-day EMA and is slightly below the important support of €13,340.
Therefore, in the near term, the outlook for the DAX is neutral, with the key support and resistance levels being at €12,534 and €13,340.
DAX technical chart
