By IFCMarkets

Expanding coronavirus infection bearish for DE30

Recent German economic data after the Destatis statistics office reported slower annual growth in fourth quarter of 2019 were mixed: activities in private sector slowed expansion in February, consumer sentiment weakened in March. At the same time data showed retail sales growth ticked up in January, followed by continued rise in construction PMI in February pointing to continued expansion in construction activity. Markit’s Composite PMI declined to 50.7 from 51.2 in January, with the contraction in manufacturing sector continuing while the services sector expansion slowed. Meanwhile the GfK consumer sentiment indicator edged down to 9.8 heading into March 2020 from an eight-month high of 9.9 in February as income expectations and willingness to buy fell on the back of concerns over the impact of the coronavirus outbreak on export oriented German economy. And as the authorities in every single nation endeavor to protect their economies from the toll of the expanding spread of coronavirus infection, worsening disruptions to global business from the coronavirus beyond China are bearish for German stock market index.

Summary of technical analysis

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