GERMAN DAX INDEX HITS RECORD HIGH
The risk appetite increased in the markets after Joe Biden signed 17 decrees to reverse Donald Trump's policies on his first day in office when he took an oath in Congress and took the US presidency. On the other hand, the acceleration of the actions of the new President of the USA as part of the fight against Covid-19 and the increasing optimism regarding the incentive package it offers caused a record increase in the indexes. Following this development, while the DAX index accelerated its attacks towards the level of 14.000, we saw that it completed yesterday's session at the limit of 13.906 with a slight decrease of 0.11 percent.
In particular, the announcement of Moody's, the International Credit Rating Agency for the Euro Zone, that it might create the risk of a long-term pause due to the Covid-19 outbreak was somewhat suppressive on the index increases. On the other hand, Euro Area inflation contracted by 0.3 percent on an annual basis in December. Regarding the new President Biden, the European Union stated that the European Union is ready for a new beginning with the USA. The German Minister of Health stated that the number of cases has decreased in the last few days due to the measures taken. Following these developments, we saw that the ECB did not change the interest rates in line with the expectations in the January meeting. However, ECB President Lagarde stated that the restrictions brought on the agenda with the increase in the number of Covid-19 cases damaged the economy, and stated that the Euro Zone economy probably contracted in the fourth quarter of 2020 when the second wave of Covid-19 took place.
After all these developments, if closing above 14.100 resistance occurs in the parity, which was insistent on the level of 14.000, the rises may enter into acceleration up to 14.400 resistance. However, with the level of 14.000 being in a strong resistance position, we are following the 13.800 support level for the first time in returns from this level.