. Daily Index Analysis - DAX 40 Struggles Amid Israel-Hamas Conflict, Earnings Reports.

23 Oct 2023

Introduction:

In the global indices market, Asian stocks continued to decline for a fourth consecutive day, with notable decreases in major markets such as Shanghai, Singapore, Hong Kong, Japan, South Korea, and Australia. Meanwhile, European stocks were also impacted by the Middle East conflict, as seen in the DAX futures in Germany, CAC 40 futures in France, and the UK 100 futures contract. Furthermore, Wall Street futures were under pressure due to concerns about the ongoing Middle East conflict and the upcoming earnings reports from major tech companies.

Market In Focus for today – DAX 40

European markets faced a decline on Monday, as the ongoing Israel-Hamas conflict added to investor concerns at the beginning of a week filled with significant data releases, corporate earnings announcements, and the European Central Bank’s (ECB) policy meeting.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 14889.7 | Negative Crossover | Bearish
  • MA 20: 15123.5 | Negative Crossover | Bearish
  • MA 50: 15290.2 | Negative Crossover | Bearish

Simple:

  • MA 5: 14900.0 | Negative Crossover | Bearish
  • MA 20: 15178.9| Negative Crossover | Bearish
  • MA 50: 15298.6 | Negative Crossover | Bearish

RSI (Relative Strength Index): 27.58 | Selling Zone| Bearish

Stochastic Oscillator: 3.57 | Sell Zone | Negative

Resistance And Support Levels:

  • R1: 14986.5 | R2: 15422.9
  • S1: 14667.5| S2: 14130.4

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion: Stop Sell : 14566.8 | Take Profit: 14130.4 | Stop Loss: 14885.7.

Elsewhere in the Indices Market

Asian stock fell for a fourth day after selloff in US markets deepened on Friday.

The Shanghai composite is down at 1.47%. Overall, the Singapore MSCI up 0.06% to 272.32. Over in Hong Kong, the Hang Seng Index down 0.72% to 17,172.13. In Japan, the Nikkei 225 down 0.83% to 30,999.55, while the Topix index was down 0.75% to 2,238.81. South Korea’s Kospi down 0.76% to 2,357.02. Australia S&P/ASX 200 down 0.82% to, 6,844.10.

Middle East conflict weighs on European stocks at start of busy week.

The DAX futures contract in Germany traded 1.06 lower, CAC 40 futures in France down 0.54% to 6,779.61 and the UK 100 futures contract in the U.K. down 0.77% to 7,344.81.

Wall St futures fall as risk wider Middle East conflict lingers; big tech results in focus.

U.S. stock index futures had a challenging start to the week as concerns mounted about the potential escalation of the conflict between Israel and Hamas, which could have broader implications in the Middle East. Investors are also eagerly awaiting the quarterly earnings reports from major technology companies and significant economic data.

Indexes: Dow down 0.63%, S&P 500- down 1.26%, Nasdaq down 1.53%.

Corporate News:

Netflix Inc (NFLX) down 0.20% at 400.96, Tesla Inc. (TSLA) down 3.69% at 211.99, Walmart Inc. (WMT) down 1.25% at 158.76. Goldman Sachs Group Inc (GS) up 0.29% at 300.05, Morgan Stanley (MS) up 0.29% at 73.13.

Key Economic Events & Data Release Today:

No Major key events today.