DAX slumps to 2-week lows on Greek jitters

FXStreet (Mumbai) – Germany’s benchmark index, the DAX crashed nearly 500 points at open and slumped to fresh two week lows below 11k threshold, only to recover slightly and reclaim 11000 levels. The DAX was heavily sold-off on Monday following its European counterparts as investors flocked out of the euro amid a looming Greek default.

Currently, the DAX 30 trades nearly -3% lower at 11150.50 levels, recovering from fresh two week lows at 10936.50. The German stocks witnessed a massive sell-off as the likelihood that Greece will eventually default on its debts increased to almost a certainty, with Athens announcing a referendum on the nation’s bailout terms and shutting down its banks.

Sam Tuck of ANZ Bank noted, “The knee-jerk reaction is for flight out of the euro and into safety. Defaulting to the IMF tomorrow looks like a certainty and when that happens there is no proposal, there is no legal mandate for Europe to bail out Greece.”

DAX Technical Levels

The index has an immediate resistance at 11200. Meanwhile, support is seen at 10865 levels and 10806 levels.

Germany’s benchmark index, the DAX crashed nearly 500 points at open and slumped to fresh two week lows below 11k threshold, only to recover slightly and reclaim 11000 levels. The DAX was heavily sold-off on Monday following its European counterparts as investors flocked out of the euro amid a looming Greek default.

(Market News Provided by FXstreet)