DAX has been clobbered during the session, dropping about 1.5%, and it looks like it may close out the day at the very lows.
That is not a huge surprise.
Ukrainian drone strikes on Russian refineries are eliminating oil coming into Europe via India and then to Europe. Of course, Saudi Aramco is letting some refiners in the European Union know that not only are they not going to get their September deliveries of crude, but they also may not get their October deliveries either. If that is the case, Germany is about to run out of power. That is catastrophic.
The 200-day EMA currently sits at the €25,000 level
That being said, we do not know how long that lasts, whether or not it is a one-off, or whether or not it gets fixed between now and then. But it certainly is not good for industrials, and as a result, Germany is going to find its DAX index overwhelmingly negative.
Top Regulated Brokers
The 200-day EMA currently sits at the €25,000 level, and that is an area I am watching with great interest because if we cannot hold that area, that might be a bad sign. If the European industrial base does not have power, nothing good comes of that, because let us not forget natural gas is also an issue.
This means that the only real source of natural gas is coming from North America, meaning that even if they do get the natural gas necessary, it is going to be extraordinarily expensive, and that brings up input costs. The situation in the Middle East continues to be a major problem for everybody, and Germany unfortunately may find itself extraordinarily vulnerable to outside influences.
Ready to trade our stock market forecast and analysis? Here are the best CFD stocks brokers to choose from.