DAX 30 Index May Fall As Germany Extends Nationwide Partial Lockdown

Asia-pacific Recap

Month-end flows made for a mixed day of trade during the Asia-Pacific session, as investors mulled coronavirus vaccine developments.

The ASX 200 index fell 1.26% as trade tensions between Australia and China continued to escalate, while Japan’s Nikkei 225 slipped 0.8% lower.

China’s CSI 300 index rose 0.64%, buoyed by better-than-expected PMI figures for the month of November.

The cyclically-sensitive Australian Dollar clambered back above the 0.7400 mark before retreating lower, after the Trump administration added two Chinese firms – Semiconductor Manufacturing International Corporation (SMIC) and China National Offshore Oil Corporation (CNOOC) – to its defense blacklist.

Gold extended its slide lower alongside silver, while crude oil prices plunged over 2% after OPEC+ officials failed to reach agreement on delaying a planned output hike in January.

Looking ahead, preliminary inflation data out of Germany headlines the economic docket alongside a speech from European Central Bank President Christine Lagarde.

DAX 30 Index May Fall as Germany Extends Nationwide Partial Lockdown

DailyFX Economic Calendar

Extended Lockdown To Weigh On Dax 30

The extension of Germany’s nationwide ‘partial’ lockdown – implemented at the start of November – may cap the benchmark DAX 30 index’s potential upside, as the nation’s total coronavirus cases surpass 1 million.

With infections tripling since the start of October, Chancellor Angela Merkel and the premiers of Germany’s 16 states opted to protract the current measures until December 20.

However, the lockdown has proved relatively ineffective at driving case numbers lower, with the 7-day average of infections continuing to hover just under 18,000.

DAX 30 Index May Fall as Germany Extends Nationwide Partial Lockdown

Source – Worldometer

Indeed, Merkel has stressed that “case numbers have stagnated at far too high a level [and] we undoubtedly have some difficult months ahead of us again”.

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