- The German benchmark resumes the upside near 13,270.
- President Trump could delay auto tariffs today.
- German Economic Sentiment improved in November.
German stocks are trading mostly in the positive territory on Tuesday, motivating the DAX to post gains for the first time after two consecutive daily pullbacks and return to levels close to 22-month tops recorded last week at 13,300.76.
DAX now looks to Trump, trade
The renewed upbeat sentiment around the US-China trade front echoed today in the risk-associated universe and pushed the index back to the black figures. In this regard, investors will be closely following the speech by President Trump later in the European evening, with the ‘Phase One’ deal on top of the agenda. In addition, Trump could delay US tariffs on the imports of EU cars and auto-parts for an extra 6-months, all collaborating with the upbeat mood in the European stock index.
Also propping up the mood, stocks have also cheered the improvement in the Economic Sentiment in November, as per the latest ZEW survey.
The DAX is expected to meet the initial resistance at 13,300.76 (2019 high Nov.7) seconded by 13,596.40 (all-time high recorded in January 2018). On the flip side, initial support aligns at the 10-day SMA at 13,119.15 seconded by the 21-day SMA at 12,939.41.
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