DE30 and Germany's Missing GDP!
Earlier, the European Central Bank (ECB) policymaker Yannis Stournaras said that the "economy is still fragile and there is no risk of high inflation era." this is synchronized with German GDP numbers, which shows even more contraction than -1.7% estimates, printing -1.8% decrease in the final number in the first quarter. These data confirm that there is no need to change the current PEPP purchase program and shift the policy to Hawkish or even less dovish monetary policies, unlike the normal situation, weaker than expected numbers in the largest economy of the Euro Zone, greening as markets are pricing on ultra-dovish monetary policies of ECB to be held.
Also, European shares rose today, boosted by comments from Federal Reserve officials that monetary stimulus won't decrease anytime soon.
On the other hand, market positive sentiment in Europe raising as German IFO indicators confirming the recovery from the Covid-19 crises. Earlier published data shows a rise in the German Ifo Business Climate Index (May) to 99.2 from 96.6. German Business Expectations (May) also rose to 102.9 from 99.2.
Based on a Bloomberg report also, "A multi-billion-euro takeover deal combining two of Germany's biggest property developers was a focus. Vonovia slipped 4% on news it was taking over rival developer Deutsche Wohnen (OTC: DTCWY), whose shares surged over 15%, for about 18 billion euros."
Market Reaction and DE30.
The STOXX 600 index of leading European shares gained 0.4% to 446.70 points after hitting a new record high of 447.01. French CAC40 is also trading 0.05% higher so far. AFTER PUBLISHED DATA, German DAX (DE30) gained 0.74% and currently trading at 15,550 Euro. Euro also gained 0.36% to 1.2260 against USD and 0.20% to 0.8643 against British Pound.
As you can see in the Daily chart, DE30 finally breach the range created between the 15,00 and 15,500 (lower and higher band of BB). RSI at 60 and while price moves above the middle line of BB and a pivot point at 15,530, confirming that DE is also technically seeking higher levels. Other essential levels for Germany's leading index are:
Resistance levels: 15,616 / 15,675 / 15,755
Support levels: 15,475 / 15,390 / 15,330
