. European Stock Futures Edge Higher; Nonfarm Payrolls in Focus

European Stock Futures Edge Higher; Nonfarm Payrolls in Focus

05 Aug 2022

DAX 40 is trading down 0.18% at 13619.90

European stock markets are expected to open marginally higher Friday, boosted by generally positive quarterly corporate earnings, but the upcoming U.S. payrolls data is likely to prompt a degree of caution.

At 02:00 AM ET (0600 GMT), the DAX futures contract in Germany traded 0.2% higher, CAC 40 futures in France climbed 0.1%, and the FTSE 100 futures contract in the U.K. rose 0.1%.

European equities have registered gains this week as largely positive corporate earnings have largely overshadowed fears that the region is heading for an economic slowdown later this year.

The Bank of England warned Thursday of a long-lasting recession, starting in the fourth quarter of this year, as it increased interest rates by 50 basis points in order to tackle inflation running at 40-year highs.

Elsewhere, investors will also keep an eye on the second-quarter earnings season, with a number of major European companies reporting.

German insurer Allianz (ETR:ALVG) posted a hefty 23% fall in second-quarter net profit, dampened by volatile markets, but still confirmed its target for the full year.

Deutsche Post (ETR:DPWGn) reported double-digit growth in revenue and earnings and confirmed its outlook for 2022, as its flourishing freight and express business continued its strong start to the year.

Lufthansa (ETR:LHAG) will also be in the spotlight as the German airline and labor union Verdi sealed an agreement on a wage deal for ground crew that will help avert more strikes after last month’s chaos.

On technical fronts DAX 40 RSI stood at 64.22 and currently it is trading above all MA. So, BUY position can be taken with following target and stoploss:

TRADE SIGNAL – : DAX 40 – BUY: 13619.90, TARGET: 13788.10, STOP LOSS: 13474.90