The DAX took a serious hit by losing 76.3 points on Monday closing at 12049.2 (down by -0.63%) as Trump plans to proceed with tariffs despite ongoing trade talks with China. Consequently, China commented that they would pull out of talks in case the US Government goes through with the tariff implementation and will take "necessary counter-measures". Right after the New York market closed, Trump slapped 10% tariffs on $200 Billion of Chinese goods which are expected to go up to 25% at year-end. Eurozone CPI figures released yesterday were as expected with Core CPI (YOY-Aug) and CPI (YoY-AUG) at 2% and 0.2%. In economic news, investors await ECB President Draghi’s Speech at 08:15 GMT.
The DAX broke our short term uptrend and retested our resistance at 12,106.7. Further downside expected in today's session if price remains below our intraday downtrend line and fails to break our set resistance level.
Support: 11,934.8 11, 895.6
Resistance: 12,106.7 12,161.5