Markets.com Logo
euEnglish
LoginSign Up

DAX hits all-time high

Jan 22, 2020
4 min read
Table of Contents

    The DAX opened at all-time high having missed a record close yesterday by a hair’s breadth. The index rallied to 13,630 as other European bourses enjoy a firmer open. German companies are among most exposed global trade worries, and therefore those enjoying the biggest bounce since US-China relations improved at the back end of last year, resulting in this month’s trade deal.

    Markets are largely shrugging off coronavirus concerns today after feeling a bit under the weather on Tuesday.

    US stocks edged away from all-time highs as traders returned from the long weekend to the coronavirus outbreak in China and the start of Donald Trump’s impeachment trial. The Dow was down 150pts on the day, or a drop of 0.5%, while the S&P 500 slipped 0.25%. The first coronavirus case in the US was recorded, raising fears of the virus spreading. Airline, casino and cruise company shares were worst hit. 

    Boeing took a nosedive, weighing heavily on the Dow, as it emerged the firm won’t get regulatory approval to fly the grounded Max 737 at least until the middle of the year. Reports that pilots have totally lost trust in Boeing are a further worry. Shares were halted limit down, slipping 5.5% before closing down 3.3%.

    Donald Trump’s impeachment trial has begun with several wins for the Republican Party as Senate majority leader Mitch McConnell held his troops in for action to repel repeated Democrat sallies. The Dems made an early breach in the GOP wall by forcing McConnell to allow more time for opening arguments, but thereafter the defences held as a series of votes were passed on party lines 53-47. Dems don’t need many GOP Senators to waver, but for now it seems the citadel is safe. Key will be Republican aims to prevent witnesses being called. For now the Democrats’ chances of winning look like a forlorn hope.

    Asia has broadly rallied overnight. The Hang Seng recovered from its worst day in months to rise 1.2%. 

    European indices climbed off the lows struck in the morning to pare losses on the day but were still broadly weaker. The DAX was the best of an ugly bunch, eking the slenderest of gains – and moving to a near record close. The FTSE 100 edged 0.5% lower as the pound rallied, weighing on the international facing stocks.

    In FX, the pound is on a firmer footing as markets dial back expectations the Bank of England will cut rates. GBPUSD has held gains above 1.30 at 1.3050 where it’s wrestling with the 50-day moving average and the long-term 23.6% Fib resistance around 1.30540. If these are breached we may consider a move back to the key double Fib level at 1.31450, a previous support zone. If the Bank does not cut then this is where we would expect GBPUSD to move back to, although last Friday’s swing high at 1.31180 needs to be cleared first.

    We need the flash PMI releases on Friday to really tell us what the Bank is likely to do. These are undoubtedly set to rebound, as they will reflect renewed business optimism in the wake of the Conservative election win. The sudden absence of the Corbyn risk to businesses will see a rebound in sentiment – the Boris Bounce in action. However, is that enough for the MPC? 

    EURUSD failed to break through at 1.11 and was looking weak at 1.1080. The pair seems happy to tread water cautiously ahead of tomorrow’s ECB meeting. USDJPY rallied to take 1.10 again.

    Gold and oil doing precious little. Gold has been bounced back to support at $1550 having attempted to make a run at $1570 and running out of steam around $1568. Oil has come back to $58, again aiming to recover the 50% Fib level of the rally from the Oct low to the recent high around $58.30.


    Risk Warning: this article represents only the author’s views and is for reference only. It does not constitute investment advice or financial guidance, nor does it represent the stance of the Markets.com platform.When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice. Trading cryptocurrency CFDs and spread bets is restricted for all UK retail clients. 

    Written by
    SHARE

    Markets

    • Palladium - Cash

      chartpng

      --

      -2.82%
    • EUR/USD

      chartpng

      --

      -0.31%
    • Cotton

      chartpng

      --

      0.87%
    • AUD/USD

      chartpng

      --

      -0.02%
    • Santander

      chartpng

      --

      0.42%
    • Apple.svg

      Apple

      chartpng

      --

      0.46%
    • easyJet

      chartpng

      --

      0.47%
    • VIXX

      chartpng

      --

      1.12%
    • Silver

      chartpng

      --

      0.17%
    Table of Contents

      Related Articles

      Week Ahead: RBA interest rate decision and US CPI data in focus

      A series of key economic data releases and central bank decisions is scheduled for 12 August 2025. At 0430 GMT, the Reserve Bank of Australia (RBA) is expected to cut its interest rate from 3.85% to 3.60%

      Tommy Yap|in 4 days

      Trump's BLS Director Firing: Questions Over US Economic Data Integrity

      President Trump's abrupt firing of the Bureau of Labor Statistics director raises concerns about the integrity of economic data. This article highlights the motivations behind the decision and its potential impact on investor and public confidence in official economic information.

      Emma Rose|about 2 hours ago

      India-US Trade Challenges: Diplomatic Vacancies Hinder Progress Under Trump

      India struggles to negotiate a favorable trade deal with the US due to diplomatic vacancies and existing trade tensions.

      Noah Lee|about 6 hours ago
      Markets.com Logo
      google playapp storeweb tradertradingView

      Contact Us

      support@markets.com+12845680155

      Markets

      • Forex
      • Shares
      • Commodities
      • Indices
      • Crypto
      • ETFs
      • Bonds

      Trading

      • Trading Tools
      • Platform
      • Web Platform
      • App
      • TradingView
      • MT4
      • MT5
      • CFD Trading
      • CFD Asset List
      • Trading Info
      • Trading Conditions
      • Trading Hours
      • Trading Calculators
      • Economic Calendar

      Learn

      • News
      • Trading Basics
      • Glossary
      • Webinars
      • Traders' Clinic
      • Education Centre

      About

      • Why markets.com
      • Global Offering
      • Our Group
      • Careers
      • FAQs
      • Legal Pack
      • Safety Online
      • Complaints
      • Contact Support
      • Help Centre
      • Sitemap
      • Cookie Disclosure
      • Awards and Media

      Promo

      • Gold Festival
      • Crypto Trading
      • marketsClub
      • Welcome Bonus
      • Loyal Bonus
      • Referral Bonus

      Partnership

      • Affiliation
      • IB

      Follow us on

      • Facebook
      • Instagram
      • Twitter
      • Youtube
      • Linkedin
      • Threads
      • Tiktok

      Listed on

      • 2023 Best Trading Platform Middle East - International Business Magazine
      • 2023 Best Trading Conditions Broker - Forexing.com
      • 2023 Most Trusted Forex Broker - Forexing.com
      • 2023 Most Transparent Broker - AllForexBonus.com
      • 2024 Best Broker for Beginners, United Kingdom - Global Brands Magazine
      • 2024 Best MT4 & MT5 Trading Platform Europe - Brands Review Magazine
      • 2024 Top Research and Education Resources Asia - Global Business and Finance Magazine
      • 2024 Leading CFD Broker Africa - Brands Review Magazine
      • 2024 Best Broker For Beginners LATAM - Global Business and Finance Magazine
      • 2024 Best Mobile Trading App MENA - Brands Review Magazine
      • 2024 Best Outstanding Value Brokerage MENA - Global Business and Finance Magazine
      • 2024 Best Broker for Customer Service MENA - Global Business and Finance Magazine
      LegalLegal PackCookie DisclosureSafety Online

      Payment
      Methods

      mastercardvisanetellerskrillwire transferzotapay
      The www.markets.com/za/ site is operated by Markets South Africa (Pty) Ltd which is a regulated by the FSCA under license no. 46860 and licensed to operate as an Over The Counter Derivatives Provider (ODP) in terms of the Financial Markets Act no.19 of 2012. Markets South Africa (Pty) Ltd is located at BOUNDARY PLACE 18 RIVONIA ROAD, ILLOVO SANDTON, JOHANNESBURG, GAUTENG, 2196, South Africa. 

      High Risk Investment Warning: Trading Foreign Exchange (Forex) and Contracts For Difference (CFDs) is highly speculative, carries a high level of risk and is not appropriate for every investor. You may sustain a loss of some or all of your invested capital, therefore, you should not speculate with capital that you cannot afford to lose. You should be aware of all the risks associated with trading on margin. Please read the full  Risk Disclosure Statement which gives you a more detailed explanation of the risks involved.

      For privacy and data protection related complaints please contact us at privacy@markets.com. Please read our PRIVACY POLICY STATEMENT for more information on handling of personal data.

      Markets.com operates through the following subsidiaries:

      Safecap Investments Limited, which is regulated by the Cyprus Securities and Exchange Commission (“CySEC”) under license no. 092/08. Safecap is incorporated in the Republic of Cyprus under company number ΗΕ186196.

      Markets International Limited is registered  in the Saint Vincent and The Grenadines (“SVG”) under the revised Laws of Saint Vincent and The Grenadines 2009, with registration number  27030 BC 2023.

      Close
      Close

      set cookie

      set cookie

      We use cookies to do things like offer live chat support and show you content we think you’ll be interested in. If you’re happy with the use of cookies by markets.com, click accept.