The DE 40 stock index started yesterday with an initial rise, following the US indices, but ended lower, closing at around 19,000. The DE 40 forecast for next week remains negative.
Germany’s industrial production fell by 2.5% month-on-month in September, below the projected 1.0% decline, following a 2.9% increase in August. Industrial production contracted by 4.6% year-on-year, a deeper drop than the 3.0% decline in August.
Source: https://tradingeconomics.com/germany/industrial-production-mom
The DE 40 reversed yesterday after rising in the morning, losing about 1.1% and closing around 19,000.0, the lowest reading in November. Traders and investors negatively assessed the possible effects of Donald Trump’s victory in the US election on the German stock market.
Market participants are concerned about the negative impact of Trump’s policies on the German economy, especially the announced tariffs on key sectors such as the automotive and chemical industries. The automotive industry is one of the most affected sectors, with BMW shares falling nearly 7.0%. Other automakers’ stocks also declined, with Mercedes-Benz down 6.7%, VW down 5.9%, and Porsche down 5.2%.
The DE 40 stock index attempted to reverse upwards yesterday following the US indices but failed to break above the 19,570.0 resistance level and retraced to support around 19,000.0. The direction in which the price breaks out of the range (19,000.0-19,570.0) will determine further prospects for index movements.
The following scenarios are considered for the DE 40 price forecast:
The DE 40 stock index started yesterday with an initial rise, following the US indices, but declined to around 19,000.0. Market participants are concerned that Donald Trump’s policy, following his US presidential election victory, may negatively impact the German economy, particularly the announced tariffs on key sectors such as the automotive and chemical industries.
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.