05.05.2020 DAX 30 Daily Analysis

05.05.2020 DAX 30 Daily Analysis

The Dax 30 closed on Monday with losses equal to 3.64% and a value of €10466.84 as shares from Technology, Consumer & Cyclical, and Industrial sectors dragged the index down. This came about after a string of events in the market led by the News from the US that President Trump was planning on imposing Taxes on China's products for their response to Covid-19. The Index's worst performer was MTU Aero Engines NA O.N. which fell 9.25% while Adidas dropped as well by 7.42%. However, Deutsche Boerse AG was the best performer, and this after falling by only 0.94%. Technically speaking most if not all Dax Futures closed on red. The Dax opened slightly higher on Tuesday though but their still uncertainty in the air because German top courts released their long-awaited verdict on ECB's quantitative easing (QE) program. The new ruling states or rather suggests that the German Government should have challenged the European Central Bank in its the decision to purchase government bonds. However, the court was clear the air and say: "The decision published today does not concern any financial assistance measures taken by the European Union or the ECB in the context of the current coronavirus crisis."   The only way to avoid further damage, according to the court's ruling, is for the ECB to prove that the Bond purchases by Germany's Central bank are really needed. The Dax's future in the short-term is quite uncertain and this might both be a good thing or a bad thing for the index.