Chart of the Day: GER30
We’ve seen some punchy moves in European equity markets, with the German DAX (GER30) closing down 2.8% — a 3.2 sigma move. Volumes were 25% above the 30-day average, while every stock in the index closed lower on the session. Risk aversion has hit markets.
And, as we can see, after a 10% rally through August and September, in just two days the price has given back 50% of this move, already hitting the technical target after price breached the neckline of the triple top. “Up the stairs, down the elevator,” as they say.
News that the US will impose tariffs of USD $7.5bn on European Union imports from 18 October, in retaliation for illegal subsidies to Airbus, will only keep the market jittery. Until we hear some positive news, which would need to come from trade talks or perhaps a really upbeat US services ISM (tonight 00:00 AEST), then rallies will be sold and downside risks prevail.
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