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Daily market commentary: The DAX-30 Index is one of Europe’s top performers



FOREX

Confidence continues to dominate investor sentiment, as reflected by the performance of the euro versus the safe haven dollar. The single currency gained roughly 0.5% to the greenback during early Monday trading.

Investors feel increasingly confident in the eurozone’s ability to bounce back quickly. The number of COVID-19 cases is receding in Europe and there are increasing signs that political will is shifting towards decisive economic stimulus and greater solidarity between member states. This backdrop gives investors the confidence to support risk-related assets.

EURUSD chart

Ricardo Evangelista – Senior Analyst, ActivTrades

daily market analysis

EUROPEAN SHARES 

All eurozone benchmarks opened significantly higher on Monday as the momentum on riskier assets remains strongly bullish momentum despite coronavirus cases continuing to rise over the weekend. As explained in previous reports, the recent positive macro data and potential development of a cure against the virus boosted market sentiment last week. However, the increasingly rapid spread of the virus over the last few days could prompt investors to temporarily slow their exposure to equities this week, or even take some profits, in the expectation of more policy support from central bankers. Having said that, the scenario of a deep downward correction on stock remains unlikely but the risk of a temporary consolidation cannot be ruled out.

The DAX-30 Index is currently one of Europe’s top performers with today’s gains driven by the auto sector, with Daimler, BMW and Volkswagen top of the table. The market is now dancing around 12,800pts having successfully cleared the zone at 12,500pts. The next major resistance can be found near 12,920pts and a clearing of this level would open the way to an extended rally near 13,550pts and 13,815pts, or in other words to the pre-crisis levels.

DAX-30 Index chart

Pierre Veyret– Technical analyst, ActivTrades


Disclaimer: opinions are personal to the authors and do not reflect the opinions of LeapRate. This is not a trading advice.

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Daily market commentary: The DAX-30 Index is one of Europe’s top performers

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