DAX Index: Here’s What Moving German Stocks Today

Summary:

The DAX index is up slightly as investors react to the upcoming earnings in the United States and the ongoing deliberations on Brexit

The DAX index is up slightly as the market waits for the upcoming corporate earnings season and progress on Brexit. The blue-chip index of German stocks is trading at €13,080, which is 0.15% above its Friday’s close. In Europe, other indices are mixed, with the FTSE 100 being in the red and Stoxx 50 up by 0.10%.

The biggest catalyst for the DAX and other indices today is the third-quarter earnings season. These earnings will provide a hint about how companies are coping with the pandemic. This week, the biggest focus will be on the main Wall Street banks that will release their results tomorrow. Among those to watch will be JP Morgan, Wells Fargo and Citigroup.

While these are American companies, their performance has an indirect impact on the DAX index. For example, better performance by banks could lead to strong sentiment on Deutsche Bank. This is because global banking groups tend to have a relationship. Also, most American companies do a lot of business in Germany.

Meanwhile, the DAX index is reacting to the progress on Brexit. Talks between the UK and the EU are going on even as the October 15^th deadline nears. A deal between the two sides will be a good thing for companies in the GER30 index. That is because most of these firms do a lot of business in Germany.

The best-performers in the DAX today are Heidelbergcement, Daimler, BASF and Covestro that are up by more than 1%. On the other hand, the top laggards were Henkel, Beiersdorf, Deutsche Boerse, and Delivery Hero.

DAX technical chart

The daily chart shows that the DAX index has been in an upward trend after it bottomed at €12,330 on September 25. The price has now formed an ascending channel that is shown in pink. At the current price of €13,080, it is slightly above the lower line of the channel. It is also being supported by the 15-day and 25-day EMA.

Therefore, I suspect that the price will continue rising as bulls aim for the upper side of the channel at €13,200. On the flip side, a move below the support level at €13,000 will invalidate this trend.