DAX boosted by strong resultsThe German stock market closed with gains on Thursday with +0.72% and has continued its opening with +0.3%. The best stock of yesterday's session was Sartorius AG VZO ON which reached €243.40/ac. at the close, followed by RWE AG ST ON €34.03/ac. and Vovonia SE €29.19/ac. The worst performers were Airbus Group SE closing at €131.96, Deutsche Bank AG NA ON at €15.32/ac. MTU Aero Engines NA ON €245.02. Overall the bullish stocks played a predominant role outperforming the bearish ones 388 to 214, closing 31 unchanged. The variation since January 1 is +10.99% and for now industrials, technology, consumer cyclicals, healthcare, financials, commodities are in positive, while non-cyclicals, real estate, energy, utilities are down.
If we look at the ECB's interest in trying to relax rate policies this has been clearly reflected in the DAX (Ticker AT: Ger40) the biggest beneficiary of such policies in Europe. On the chart we can currently see a progressive climb since June 14 in the index looking for a recovery towards the highs. The range trend taken since the beginning of the year continues to be respected. It remains to be seen whether monetary policy will be supportive after the summer, but for the time being the Frankfurt spread is in the 18,600 point zone and with a trading bell shape that heavily weights the 18,000 point zone and an RSI with buy exhaustion signals at 72.20%. It would not be unusual to see a return to the mean before the end of the summer.
Ion Jauregui – ActivTrades Analyst
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