The German index rallied a bit during the session on Wednesday, as we continue to see a bit of a grind higher more than anything else. Ultimately, this is a positive market, but patience is necessary.
DAX
The German index rallied a bit during the early part of the trading session on Wednesday as we are now well above the 25,000-euro level. In fact, we even managed to break above the 25,250-euro level at one point before dropping a bit. The DAX has been grinding quite significantly over the last several months, and the 50-day EMA is offering a bit of support as it is a bit of an uptrend line.
Top Regulated Brokers
Some of the major tailwinds for the index right now include Airbus, which has surged over 6%, announcing that they are going to do an accelerated share buyback program and also mentioned ambitious profit targets for 2029 fueled by robust commercial demand. There are certain other things like the ZEW indicator that have shown a bit of strength. This jumped sharply to 26.3, a huge rise from 15.8 last month.
German Economic Tailwinds and Energy Headwinds
The most significant headwind for the market, though, is going to be energy. It's going to be petroleum, such as Brent markets breaking above the $93 level. That could cause issues for the larger industrial base.
Ultimately though, this is a market that seems to be willing to look past the Middle East at times and look at the overall profitability or lack of profitability of companies in Germany. Right now, things still look fairly bullish, and with that, it looks as if we could go looking to the 26,000-euro level over the longer term. I have no interest in shorting this market, with the 200-day EMA offering a hard floor near the 24,250-euro level.
Ready to trade our stock market forecast and analysis? Here are the best CFD stocks brokers to choose from.