European Stocks Mixed; Focus on Potential New Russian Sanctions

European Stocks

DAX 40 is trading down 0.89% at 14428.90

European stock markets traded in a mixed fashion Tuesday, with investors digesting the potential for more sanctions against Moscow, which could lead to higher commodity prices and fuel inflation concerns.

By 3:40 AM ET (0740 GMT), the DAX in Germany traded 0.4% higher, the CAC 40 in France rose 0.1% while U.K.’s FTSE 100 dropped 0.1%.

The United States and Europe were planning new sanctions to punish Moscow over alleged atrocities in Ukraine, with U.S. President Joe Biden on Monday accusing Russian President Vladimir Putin of war crimes over civilian killings in the Ukrainian town of Bucha.

Ukraine President Volodymyr Zelensky is set to address the United Nations Security Council later Tuesday after earlier warning that reported atrocities in Borodyanka, a settlement near Kyiv, could be worse than in Bucha.

The United States stopped the Russian government on Monday from paying holders of its sovereign debt more than $600 million from reserves held at American banks, but the major move would be for the European Union, and Germany in particular, to ban the import of Russian gas and oil.

Germany is heavily dependent upon Russia for energy, and agreeing to such a move would run into political difficulties given the economic repercussions.

On technical fronts DAX 40 RSI stood at 53.91 and currently it is trading above 20 and 50 days MA & below 5 days MA. So, BUY position can be taken with following target and stoploss:

TRADE SIGNAL – : DAX 40 – BUY: 14440.00, TARGET: 14584.40, STOP LOSS: 14341.50

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