- DAX pops over 140 points on economic optimism.
- Wirecard stock surges 155%.
- BlackRock upgrades European stocks to "overweight".
The German stock market rose significantly on Monday. Concerns about increasing coronavirus infections in the US did not affect market sentiment at all. Pure economic optimism prevailed instead.
After a mixed start to the trading day, the DAX closed up 1.2% at 12,232 points. The MDAX climbed 0.19% to 25,668.74 points and the SDAX gained 1.06% to 11,480 points. The TecDAX closed at 2,898 points, down 0.48%.
BlackRock upgrades European stocks to "overweight"
The BlackRock Investment Institute said on Monday it has upgraded European equities to "overweight", with the region poised to benefit from economies restarting after the coronavirus-inflicted shutdown. This was reported by the Reuters. "The region is exposed to a cyclical upside as the economy restarts, against a backdrop of solid public health measures and a galvanizing policy response," BlackRock said in its mid-year outlook.
Nevertheless, the asset manager lowered its rating for US equities to "neutral". The outlook is clouded by weakening fiscal stimulus and a prolonged epidemic in the US, as well as tensions between the US and China.
Despite the downgrade, US equity markets gained significantly on Monday. The Dow Jones is up 454 points and the S&P 500 rises 1.26%. For the Nasdaq 100 the outlook is up 0.91%.
Wirecard stock surges 155%
Wirecard shares attracted a great deal of interest among the individual shares. They gained up to 216% at times. This was the largest price increase of a DAX stock in history. During the weekend, the Wirecard Management Board had said that a continuation of the business was "in the best interest of the creditors". Moreover, Wirecard Bank, a subsidiary, was not part of the insolvency proceedings. Last Thursday, the payment service provider involved in a billion-euro balance sheet scandal had filed for insolvency proceedings.
German DAX 30 key technical levels
From the technical perspective, the chart picture remains neutral. The next resistances are 12,313.86 (20-day line), 12,452.47 (R2) and 12,557.49 (R3). Supports are at 12,156.26 (200-day line), 11,984.37 (S1) and 11,697.81 (S3).
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