Public and political pressure weighed on the prime minister Scholz who fired his finance minister and broker the 3-way government coalition.Scholz had
Public and political pressure weighed on the prime minister Scholz who fired his finance minister and broker the 3-way government coalition.
Scholz had called for a vote of confidence in January next year, with elections for March. However, political pressure, and in particular public opinion have pressured the caretaker PM to call a vote of confidence as early as December.
The early vote of confidence, which he is unlikely to survive, would open the way for elections as early as January. The PM has stated that he wants the coalition parties to come to an agreement as to the policies that can be passed from here to the election day.
The stock markets gained some relief from the knowledge that the political uncertainty may end sooner than later. Investors are now turning to the ECB loosening policy and the US Trump fueled rally.
Lurking in the background are possible tariff hikes from the incoming Trump administration in January. The main reason why European stocks have underperformed the US stock market. Tomorrow we get data for the ZEW Sentiment Index, analysts forecast a small rise from 13.1 to 14.
Technical View
The day chart above for the DAX shows a market that is in bullish trend with the latest candles bouncing off the Ichimoku cloud. Last Thursday, the market moved out of a short sideways trend (blue area).
Yesterday’s candles tested the top of the sideways trend, and today’s candle has rallied higher again. However, it’s currently found resistance on the top of the previous 2 candle bodies.
For the market to regain its bullish momentum, we need the market to close above its all-time high of 19,681(blue line).
The market will find major support on the top side of the cloud, which also coincides with the support form a previous high of 19,050 (red line).
DAX
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