Skip to main content

The price action suggests there is rotation at work -check out the DAX futures right now

If we look at the price action of the DAX and that of the Dow Jones since this time yesterday we can see clear divergence between the two. Of course we can run a similar exercise with the FTSE 100, but that is not a new dimension. That is because the FTSE 100 has been floundering for some while now, whilst the DAX has been marching onwards and upwards to new record highs. This point about rotation into the DAX from investment elsewhere was also made yesterday and you see how that played out into the close. So, with the Chinese markets ignoring a potential short selling ban from the PBOC today, they have all dropped back quite sharply, to close in the red. So, does that mean; that Chinese investors have now piled into the DAX as well? It could be and it would be no surprise to see that. I bring this to your attention just ahead of the European opening and the odds of the DAX rising to set fresh records this morning. The index is currently set for a record opening level at around 17,590 

Ready to Get Started?

Start here. Join 2.9M Libertex users around the world!