Dax Drops As Fears Of Coronavirus' Economic Impact Grow
Fiona Cincotta January 30, 2020 11:48 AM
Dax drops over 1% on coronavirus fears
In line with other equity markets across the globe, the Dax is declining in early trade. Fears over coronavirus and its impact on the Chinese economy, global growth and trade have weighed heavily on sentiment.
Data coming out of Europe’s largest economy this morning hasn’t helped ease the run on German stocks. Germany’s unadjusted employment rate rose in January, 198,000 higher than the previous month and 20,000 higher than a year earlier.
Investors will now look ahead to German inflation data. CPI is expected to decrease -0.6% mom in Jan. US GDP figures could also help drive sentiment. US economic growth is expected at 2.1%#
Dax has dropped over 1% breaking through its 200 sma on 4 hour chart. The Dax trades below 200, 100 and 50 sma on a bearish chart.
Immediate support at 13106 (low 8th Jan) prior to 12948 (low 6th Jan). On the flip side resistance is around 13350, (100 sma swing high 29th Jan), followed by 13430 (50sma) which could open the door to 13604 (high 24th January).
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