The DAX in Germany has seen both selling and buying during the Tuesday session, with a lot of the upward momentum focused on a few names.
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The DAX in Germany has been very noisy during the trading session on Tuesday, but it is starting to show signs of life to the upside again. We fell enough to basically reach the area that we tested at the open for the week. We've reaffirmed it as support and taken off to the upside.
The market looks as if it is trying to break above the 25,600-euro level to go looking towards the recent swing high from just a few weeks ago. There are several things going on at the same time that are very bullish for the German index. For example, automakers have done really well. Mercedes-Benz had a monster day as they've reaffirmed passenger car margin targets despite the fact that they talked about maybe a little lighter revenue. The other companies in that sector that have really lifted during the session are Porsche Automobil and BMW.
Automakers and IFO Data Power Recovery
Infineon is a little bit negative. Siemens Energy is a little bit of a drag as well, and that might have been felt at the open. But all things being equal, with falling oil prices, we are getting a little bit of a tailwind to the market, and the IFO Business Climate Index printed its 3rd consecutive monthly improvement in July, rising to 86.6, which shows that German companies are a little bit more positive despite the fact that we have so many geopolitical headwinds.
I think this is a market that, every time it dips, there will probably be buyers willing to get involved. This remains a market that I think is a buy over the longer-term.