Market News & Analysis
Dax Drops 0.8% But Bullish Trend Remains
Fiona Cincotta February 19, 2020 4:00 AM
Apple warns on profits
Apple, considered one of the best bellwethers for the coronavirus impact, warned that their profits could miss expectations owing to low production levels and slow Chinese consumption. China is a big market for Apple, accounting for around one sixth of its global revenues and the source of most of its products. With this in mind, the impact is both on supply and demand. The warning from Apple has served as a reality to check to the financial markets, which had so far been assuming that any impact from coronavirus will be short lived.
German ZEW Sentiment Index Drops
Also dampening the mood for the Dax was today’s German ZEW index for February. The Sentiment Index tanked to 8.7 from 26.6, significantly short of the 21.5 analysts forecast. Investment sentiment has dropped sharply as the effect of the coronavirus outbreak weighed on exporters, painting an increasingly gloomy picture for Europe’s largest economy.
The hit to sentiment comes following a poor run of data from Germany, with economic growth stagnating, and the manufacturing sector suffering its worst year for a decade last year, following a sharp fall in orders.
Dax levels to watch:
Despite falling over 100 points today, the DAX remains in an uptrend. A break below 13445 (Feb 10 low & 100 & 50 sma approx.) could negate the current uptrend. This could open the doors to 13320 (200 sma) and eventually 12970.
On the flip side immediate resistance can be seen at 13731 (today’s high) prior to 13795 (all time high).
From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.
As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.