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DAX extends losses, weak factory output hurts

FXStreet (Mumbai) - The German equity index is down by about 0.87% after the German Industrial Production data for the month of August shocked markets with the steepest fall since 2009.

The Dax has opened below the critical support of 9382 and is trading down at 9136 at the time of writing. German Industrial Production contracted 4% month-on-month in August, with the investment goods witnessing a steep fall. Only the energy output managed to clock a 0.3% gain.

"Industrial production is currently going through a weak phase, but the current decline is exacerbated by holiday effects," the German Economic ministry said in a statement. Moreover, the data adds to evidence that the Eurozone’s largest economy is losing steam.

Dax technical levels

Dax has a support of 9130 (low of 4th Aug, 2014); breach of which shall see prices testing 9067 (low of 15th Aug, 2014). On the flip side, prices may rise to 9200 if the index manages to sustain above 9130. The Daily and the Intraday indicators are in favor of further sell-off.

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