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DAX soars on speculation of more stimulus from the ECB

FXStreet (Mumbai) - The German blue chip index, Dax jumped today after the European Central Bank (ECB) chief Mario Draghi indicated readiness to do more if the inflation continues to fall in the Eurozone.

The Dax traded 1.15% higher at 9593.00 levels at the time of writing. All 30-shares of the index are trading positive today. Among the index stocks, Heidelbergcement AG Is the top performer so far, up 2.63%, followed by E.ON SE, Infineon AG, Thyssenkrupp AG and BASF SE, each up by 2%.

Moreover, the equities traded strong ahead of Draghi speech as markets were expecting the central bank head to indicate readiness to do more if needed. “We will continue to meet our responsibility—we will do what we must raise inflation and inflation expectations as fast as possible, as our price stability mandate requires of us,” Mr. Draghi said in a speech to a banking conference.

The comments from Mr. Draghi fired up expectations of more aggressive monetary stimulus in the days ahead. The result was a sharp fall in the EUR/USD pair accompanied by a rise in the European stock markets.

DAX Technical Levels

The index is fast approaching the immediate resistance located at 9612 (July 21 close), above which gains could be extended to 9653.00 (July 29 close). Meanwhile, support is seen at 9510 and 9488 levels.

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