Slowing Virus Lifts Stocks
Fiona Cincotta April 6, 2020 8:06 AM
Stocks jump as coronavirus cases and deaths slow in mainland Europe
Asian markers traded on the front foot overnight and European markets jump higher on the open, whilst safe havens come under pressure as the market mood turns positive.
German factory orders fell by less than forecast also supporting risk sentiment. Factory orders dropped -1.4% month on month in February, versus the -1.9% forecast and the 5.5% print a month earlier. The data will get worse over the coming months before it gets better, but today’s reading is a sign of relief for investors, particularly as the coronavirus outbreak shows signs of easing.
Levels to watch
The DAX has jumped 4% on the open, at 9920. It trades above its 50 and 100 sma on the 4 hour chart, a positive sign. Although it remains with the horizontal channel that it has traded within since 25th March. A break above the upper bound of 10144 is needed for more bulls to jump in. Meanwhile a move below the lower bound of 9328 is needed for another step lower.
Immediate resistance can be seen at 10144, prior to 10645 (200 sma) and 10766 (high 11th March).
On the flip side, support can be seen at 9700 (100 sma) prior to 9328 (channel’s lower bound).
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