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4 Dec 2014
DAX declines from record highs on ECB’s wait and watch approach
FXStreet (Mumbai) - The Germany’s DAX index declined from the record high levels today after the European Central Bank (ECB), contrary to market expectation, decided to reassess the impact of the ongoing stimulus measures before moving further more aggressive measures like sovereign or corporate bond purchases.
The DAX now trades 0.60% lower at 9911.50 levels; down 1.57% from the record high of 10,069.30 levels hit earlier today. Moreover, the German market has rallied since mid-October on hopes that more aggressive stimulus measures from the ECB would weaken Euro, thereby strengthening the German exporters.
The index breadth has turned negative with an advance-decline ratio of 7:23. Among the index stocks, Commerzbank is now down 2.32%, followed by Heidelbergcement AG, which has weakened by 2%. Deutshce Bank AG and Deutsche Post AG weakened 1.73% and 1.66% respectively. Meanwhile, on the plus side are shares in Infinoen AG, up 2.42%, Continental AG, up 1.66. Other gainers include airliner Lufthansa, and shares in Merck and Daimler AG.
DAX Technical Levels
The index has an immediate support at 9891.20 (Sept. 14 high), under which prices can fall to 9794.05 levels. Meanwhile, resistance is seen at 10,000 and 10,069.30 levels.
The DAX now trades 0.60% lower at 9911.50 levels; down 1.57% from the record high of 10,069.30 levels hit earlier today. Moreover, the German market has rallied since mid-October on hopes that more aggressive stimulus measures from the ECB would weaken Euro, thereby strengthening the German exporters.
The index breadth has turned negative with an advance-decline ratio of 7:23. Among the index stocks, Commerzbank is now down 2.32%, followed by Heidelbergcement AG, which has weakened by 2%. Deutshce Bank AG and Deutsche Post AG weakened 1.73% and 1.66% respectively. Meanwhile, on the plus side are shares in Infinoen AG, up 2.42%, Continental AG, up 1.66. Other gainers include airliner Lufthansa, and shares in Merck and Daimler AG.
DAX Technical Levels
The index has an immediate support at 9891.20 (Sept. 14 high), under which prices can fall to 9794.05 levels. Meanwhile, resistance is seen at 10,000 and 10,069.30 levels.