DAX Index
The Dax index is 0.70% lower in early-Monday trading as Asian stocks drop on the potential for U.S. sanctions. The Dow Jones industrial index was down over 300 points in futures trading after the end of the Thanksgiving holiday.
The market is lower despite a strong Black Friday which saw an estimated $9 billion spent on U.S. retail websites. The figure was a 22% increase over the previous record of $7.4 billion. Not surprisingly, research also showed a drop of 52% in physical store footfall.
Hong Kong’s recent stock rally is being hit by reports of sanctions by President Trump’s administration, alongside a spike in coronavirus cases. The key event in this week’s economic calendar will be the release of U.S. Non-Farm payrolls on Friday. This afternoon will see the release of German inflation figures with the indicator expected to show a tick higher to -0.1%. Traders are largely ignoring these types of indicators because the most recent lockdowns in Europe will end any hope of higher inflation in future readings.
The Dax index has been testing the key resistance at 13,300 with the goal being the all-time highs near 13,770, which were set in February of this year. Support on the downside comes in at 13,000 with the 50-day moving average at 12,800. The Investing Cube team is currently available to help all levels of traders with the Forex Trading Course or one-to-one coaching.
