Snapshot of the DAX Activity on Wed

The DAX rose 0.38 percent on Saturday. The DAX closed at 16,946 points somewhat erasing Tuesday’s 0.92 percent drop.

Key Points

The DAX  & European share increased by 0.38 percent on yesterday, finishing at 16,946 points
On Thursday afternoon, earnings from businesses, European trade numbers, with ECB Lagarde will constitute the primary subjects.
Afterwards in the day, American economic statistics and US Fed statements should be considered.

The European job market fared higher than anticipated.On Wednesday afternoon, European economic statistics calmed worries of a downturn. Based on next estimation data, the European Union’s economy stopped in the fourth quarter. The GDP declined by 0.1 percent in the third quarter. Following stagnating in the third quarter, the GDP increased by 0.1 percent year over year. There weren’t no revisions to the original estimates.

Nevertheless, Continental job creation for the fourth quarter exceeded estimates. Jobs rose by 0.3 percent quarter on quarterly in fourth quarter. Following a 0.2 percent gain in the third quarter. Year over year, jobs increased by 1.3 percent.

Europe’s production numbers have been positive. Industrial output rose by 2.6 percent in Dec. Following a rise of 0.4 percent in Nov. Analysts expect a 0.2 percent drop. Notwithstanding a 1.6 percent drop in Germany’s manufacturing activity, European manufacturing capacity remained strong.
The most recent assessment stated that the European Union’s economy could survive the downturn amid the Germany’s economic situation.

US Fed Buzz Offers Delayed Backing

On Wednesday, FOMC official Goolsbee responded to the higher-than-expected the U.S. CPI figure. According to reports, the President of the Chicago Fed advised the Federal Reserve to proceed with caution while deferring rate of interest decreases. Particularly,  prices would keep on to fall near the goal of 2 percent amid a potential uptick in price increases in the short-term.

The equity markets moved on Wednesday, with retail-related equities leading the way. Both Zalando SE with Adidas witnessed rises of 1.48 percent and 2.50 percent, accordingly.

The shares of Infineon and SAP closed the trading day higher 1.32 percent and 1.30 percent, respectively. After technology shares recovered from Tuesday’s selling spree.
Nevertheless, car shares saw an up and down session. BMW and the Mercedes-Benz Company closed the session up 0.28 percent and 0.14 percent. Volkswagen and Porsche Co fell by 0.71 percent and 0.43 percent each.

European Trade Information, ECB’s Lagarde & Corporate Results

On Thursday afternoon, European trade figures will pique investors’ curiosity. Analysts expect the euro area’s surplus in trade to increase from 20.3 billion to 21.5 billion euros in Dec. Yet analysts must examine export and import data. Poor imports as well as exports could suggest a declining demand situation.

The Germany’s surplus of trade worsened in Dec as import fell faster than shipments. A comparable pattern might exacerbate worries of a Continental economic downturn.  Aside from the data, the ECB’s remark should be considered. ECB Lagarde is set for a presentation. Backing for the month of April ECB rate drop may boost investor interest in DAX-primed stocks.

Near-Term Outlook

Economic statistics and ECB comments will determine the DAX’s immediate movement. Higher-than-projected retail sales in the US might lessen betting for a US Fed rate decrease in the first half of 2024. Nevertheless, strong earnings from companies might counter concerns about an increasingly aggressive US Fed rate trajectory.

The DAX Index Technical Markers: Daily Graph View

The DAX maintained significantly higher than the 50- & 200-D- EMAs, confirming positive pricing signs.

Any DAX rally to 17 K would put a new record peak of 17,050 pts with the 17,100 level in contention.
Today, economic statistics, company results, and monetary authority comments must be considered.

Yet, a breach of the 16,850 mark could enable the bearish traders to attack the 50 D- EMA.
The 14-D Timeline RSI of 55.98 implies that the index will advance above 17,100 mark prior to hitting overheated zone.

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