Market News & Analysis
Bright Spots in Chinese Data Overshadow Trump's Threats
Fiona Cincotta May 15, 2020 4:36 PM
After two downbeat sessions investors are once again in a buying mood showing immunity to a whole host of reasons to remain bearish.
The markets have largely brushed off Trump threatening to cut off relations with China. The flare up in US – Sino tensions come amid Trump’s efforts to pint the blame of the coronavirus outbreak on China. Whilst traders are sweeping these comments under the carpet today, it is highly unlikely that we have heard the end of this. The US – Sino relations theme could well hamper market sentiment across Q2.
German GDP is expected to show -2.2% decline in the first quarter, a level last seen in 2009. However, this will only capture the start of lockdown with a 10% contraction forecast for the second quarter of the year.
Dax levels to watch:
After two days of losses, the Dax is trading below its 20 & 50 sma on 4 hour chart. Immediate support can be seen at 10372 (overnight low) prior to 10141 (yesterday’s low).
Resistance can be seen at 10560 (20 sma) prior to 10685/10700 (50 sma & high 13th May) and 11030 (high 11th May).
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