Global Markets Edge Up on New Hope

28/12/2020

Global indices saw a considerable rise following news of US President Donald Trump signing the COVID-19 relief bill.
 

According to economists  more financial aid would be necessary to get the economy moving, the current aid will serve as an immediate support for the urgent requirements of the economy. This is precisely the reason why global markets have surged ahead.

While Japan’s Nikkei showed a 0.4% improvement, US S&P futures ticked up by 0.4%.

European stocks also gained with automaker and energy stocks marking the maximum gains. The EU stock index jumped by 0.5%. Most of this is attributable to the bettered performance of France and German shares. France’s CAC 40 rose 0.5% and Germany’s DAX went up by 1.29%. However, the UK FTSE 100 remained closed on Monday due to Christmas holidays.



The momentum the DAX has showed is very much positive. Technically speaking, a bullish pinbar has formed in the weekly chart. If this positive momentum extends further, it could help the DAX see more gains and break the resistance. However, on the flip side, if the institutions take a profit booking due to year-end closure, we may expect the price to drop below the support level.
 
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