19.05.2020 DAX 30 Daily Analysis

19.05.2020 DAX 30 Daily Analysis

Germany's Dax 30 index had a good start to the week, gaining 5.67%  which is the biggest gain since April. Finally, it was able to break beyond the 11000 resistance. The Dax mostly was following the performance of wall street as the head of the American Federal Reserve Jerome Powell said that the Fed would go over and above to support the economy. This news shows the possibility of even looser monetary policy and this boosted global stock markets. There is also the fact that many prominent pharmaceutical companies are working towards getting a vaccine and investors are fully convinced that a vaccine is exactly what will restore economic activities. The Dax spiked even further right before the close of the trading session yesterday after the news that Germany and France want to deal with the probable recession insight with a €500 Billion reconstruction fund