European Stocks Higher; Likely Russian Gas Resumption Helps
02 Sep 2022
DAX 40 is trading up 0.21% at 12798.70
European stock markets rose Friday, helped by the likely resumption of Russian gas supplies to Europe, ahead of the release of the key U.S. monthly jobs report.
By 04:00 ET (08:00 GMT), the DAX in Germany traded 1.1% higher, the CAC 40 in France rose 0.5%, and U.K.’s FTSE 100 climbed 0.5%.
Russia looks set to resume gas supplies through its key pipeline to Europe, with shipment orders, published by the pipeline’s operator, indicating that flows are expected to restart on Saturday at the same level as before the work.
This news has come as a relief as countries in western Europe scramble for energy supplies amid fears that Moscow will authorize more halts this winter.
Still, gains are limited ahead of the release of the August U.S. jobs report, at 08:30 ET (12:30 GMT), which is one of the last pieces of economic data the Fed will see before its September meeting, where it is set to raise its benchmark interest rate again.
Nonfarm payrolls are expected to have increased by 300,000 jobs last month after surging 528,000 in July, and the release comes shortly after Fed Chair Jerome Powell warned of the need to continue to tighten monetary policy to quell inflation even at the expense of rising unemployment.
The size of the interest rate hike the U.S. central bank will announce later this month is in doubt, but an increase in payrolls would mark the 20th straight month of job growth, suggesting the labor market is coping with the aggressive rate hikes already instigated.
On technical fronts DAX 40: RSI stood at 28.26 and currently it is trading below all MA. So, SELL position can be taken with following target and stoploss:
TRADE SIGNAL – : DAX 40 – SELL: 12798.80, TARGET: 12710.40, STOP LOSS: 12867.00