DAX Index Fails to Make Up Losses

The DAX index, on the other hand, had a somewhat weak day with an attack towards the 15,750 level. The German Ministry of Economy announced that the growth in the German economy will rise in the third quarter after increasing by 1.6 percent in the second quarter. It was also underlined that German economic growth will likely normalize in the fourth quarter. It was among the remarkable statements from the ECB officials that people thought that this increase would be permanent against the rising inflation rates in Germany, which was a source of greater concern. While these developments limited the decreases on the index side, it can be said that the uncertainty regarding the election process in Germany increased the tension somewhat.

Last week, it was especially important to announce from the ECB meeting that the speed of the pandemic emergency asset purchase program will be reduced, but that the process will continue to be discussed until December. This morning, the German Ministry of Economy also announced that the economy will return to pre-epidemic levels by 2022 at the latest. In addition, explaining that they do not doubt the growth figure, the Ministry of Economy also underlined that they are not planning more stringent epidemic measures.

Following these developments, the risk appetite weakened in the markets and the DAX index remained weak in its attacks against the 15.750 resistance. If the index closes above this level, it can be expected to turn upwards within the framework of the 16,000 and 16,300 resistance levels. On the other hand, if the pullback potential increases in the index, the supports of 15.500 and 15.100 remain important critical thresholds.

Source: investing.com

Author: Murat Akel