Lower EUR is a help. Less geopolitical anxiety.
The European major indices have recovered some of the sharp declines seen in trading yesterday:
- German Dax rose 0.55%
- France's Cac rose 0.58%
- UK FTSE rose 0.45%
- Spain's Ibex is ending up 0.62%
- Italy FTSE MIB is higher by 0.44%
- Portugal's PSI20 is unchanged.
The yields on 10 year debt are up modestly.
- Germany 0.358%, up 1.6 bp
- France 0.672%, up 1.6 bp
- UK 1.032%, up 3.3 bp
- Spain 1.585%, up 2.3 bp
- Italy 2.085%, up 1.9 bp
- Portugal 2.863%, up 1.3 bp
- Greece 5.527%, unchanged.
The German Dax fell below its 200 day MA yesterday. That was the first breach of the MA since July 2016.
The low extended to the 38.2% of the move up from the November 2016 low at 11890.87 (see chart below).
Today, the range was much lower and the price did rebound above the 200 day MA (the high reached 12040), but the price is also closing below that key MA level. We will see what tomorrow brings as the index tests key technical levels.
