Welcome to the German DAX Summary article. Between the relaxation around North Korea on the one hand and weak German economic data on the other hand, the Dax 30 has come to a standstill. On Tuesday, traders seemed unfazed by the meeting between US President Donald Trump and North Korea’s ruler Kim Jong Un, but the Dax 30 remains bullish above 12600.
German DAX Summary – News Roundup
The DAX30 index started with gains after a quick nuclear disarmament of North Korea was confirmed. The handshake between Donald Trump and Kim Jong Un may arouse a lot of media attention, but the agreement was ineffective on the stock market. One of the reasons for this would be the validity of the US and NK agreement. From the point of view of Federal Foreign Minister Heiko Maas, North Korea’s current policy offers a reason to distrust the summit agreement reached in Singapore. The SPD politician stated that we must first wait and see if North Korea is really ready to engage in the abandonment of its nuclear weapons as part of a substantial peace process, or not. Too often the International Community has been deceived by Pyongyang in the past. The second reason came down to the lowest ZEW for over five years.
13-06-2018 German DAX Summary Analysis
The German leading index initially climbed to its highest level in two weeks. But the early positivity faded away and the DAX weakened again. Even Wall Street was not deterred by the meeting of the two rulers. So we know that in Singapore, the dismantling of all nuclear weapons on the Korean peninsula was agreed. In return, the US guarantees the security of the country. However, traders remain sceptical.
- The major swings are bullish above 12602
- The minor swings are bullish above 12750
- We’ve already tagged the ML from the three most recent alternating major pivots. The ML tag was also a new swing high, but I am expecting for higher prices even still.
Also every third Friday of the last month of the quarter, the witches are dancing on the floor. On a large expiration day, numerous futures contracts are due. Three types of derivatives expire: options on individual stocks, options on indices and futures on indices. Let’s see how the witching affects prices for the rest of the week.
All the recent POCs have been taken out, which means that there are no obvious targets, but if price continues to rally higher, then the most obvious target for the end of the week is the [approximate] 13180 POC from the end of May.
Don’t forget that we have an upcoming Fed decision, investors shied away from larger commitments. It is widely expected that the US Federal Reserve will raise the key rate by a quarter of a percent. However, it is uncertain about whether the Fed will do it again once or twice more this year. Thanks for reading the German DAX Summary.
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