GERMAN STOCKS ADVANCES AMID ONGOING NAFTA TRADE DEAL
The DAX30 has started the week with considerable gains .DAX 30 is currently trading at 12537 and has gained 1.15% from the last closing.
European shares climbed on Monday after a market-friendly speech by U.S. Fed Chairman Jerome Powell and signs of progress on a U.S.-Mexico NAFTA trade deal, which drove car stocks higher.
DAX components -BMW, Volkswagen, and Daimler rose 1 to 1.6% at the time of writing. The German carmakers rely on smooth trade between Mexico and the U.S. to sell vehicles made in Mexican manufacturing plants into the U.S. market.
In economic news, German Ifo Business Climate improved to 103.8, above the estimate of 101.9 points. The previous value of Index was 101.7. German Current Assessment data also released on Monday was 106.4 better than expected value of 105.4.
Looking across the benchmark, Germany’s Metro Group was the top performer, after Ceconomy said it was in talks to sell most of its 10 percent stake in the German wholesale retailer. Shares of Metro Group jumped 12 percent during morning deals.
On the technical front, the RSI is currently at 52.76% and suggests that the market can move in the upward direction. The %K has crossed the %D from below to the upside at 15.45% and suggests that the market may head downwards. The current price is above the MA5. So, overall the market setup seems to be positive.
Trade Suggestion-Limit Buy At: 12510, Take Profit At: 12560 Stop Loss At: 12485