. Daily Index Analysis - DAX 40 Defies Market Volatility and Energy Costs

Daily Index Analysis – DAX 40 Defies Market Volatility and Energy Costs

Daily Index Analysis – DAX 40 Defies Market Volatility and Energy Costs

16 Oct 2023

Introduction:

In the world of indices, Asian stocks face weakness amid ongoing tensions in the Middle East. The Shanghai Composite is down by 0.46%, while the Hang Seng Index in Hong Kong has dropped 0.97%. In Japan, the Nikkei 225 is down 2.03%, reflecting a global risk-off sentiment. Meanwhile, European shares have also fallen as market concerns persist. In the U.S., despite positive results from major banks, the S&P 500 and Nasdaq have declined, impacted by negative consumer sentiment data and geopolitical factors, leaving investors cautious in the face of increased risk.

Market In Focus for today – DAX 40

Though the benchmark index rose for the week, European shares fell on Friday, reflecting risk aversion across global markets and as growing energy prices added to worries about ongoing inflationary pressures.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 15336.64 | Negative Crossover | Bearish
  • MA 20: 15401.65 | Negative Crossover | Bearish
  • MA 50: 15454.08 | Negative Crossover | Bearish

Simple:

  • MA 5: 15348.2 | Negative Crossover | Bearish
  • MA 20: 15402.7| Negative Crossover | Bearish
  • MA 50: 15405.6 | Negative Crossover | Bearish

RSI (Relative Strength Index): 41.9 | Neutral Zone | Neutral

Stochastic Oscillator: 7.52 | Sell Zone | Negative

Resistance And Support Levels:

  • R1: 15611.4 | R2: 16062.9
  • S1: 15235.2| S2: 14858.9

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion: Stop Sell : 15134.8 | Take Profit: 14858.9 | Stop Loss: 15335.5.

Elsewhere in the Indices Market

Asian stocks weak as Middle East tensions persist.

The Shanghai composite is down at 0.46%. Overall, the Singapore MSCI up 0.02% to 282.25. Over in Hong Kong, the Hang Seng Index down by 0.97% to 17,640.36. In Japan, the Nikkei 225 down 2.03% to 31,659.03, while the Topix index was down 1.53% to 2,273.54. South Korea’s Kospi down 0.81% to 2,436.24. Australia S&P/ASX 200 down 0.35% to, 7,026.50.

European shares fell on global risk-off mood.

The DAX futures contract in Germany traded 0.15 lower, CAC 40 futures in France down 0.10% to 6,996.77 and the UK 100 futures contract in the U.K. up 0.24% to 7,617.91.

S&P 500, Nasdaq fall with data, geopolitics offsets strong results.

Indexes ended the day lower on Friday as positive quarterly results from some of the biggest U.S. banks were overshadowed by negative consumer mood data and the Middle East war, which turned off investors from taking on more risk.

Indexes: Dow up 0.31%, S&P 500- down 0.50%, Nasdaq down 1.23%.

Corporate News:

Amazon Inc (AMZN) down 1.92% at 129.79, Tesla Inc. (TSLA) down 2.99% at 251.12, Nike Inc. (NKE) up 0.66% at 99.91. Goldman Sachs Group Inc (GS) down 0.18% at 309.30, Morgan Stanley (MS) down 0.26% at 77.79.

Key Economic Events & Data Release Today:

(NZD) Business NZ PMI (Sep) Actual 45.3, Previous 46.1 at 03:00.

(CNY) CPI (MoM) (Sep) Actual 0.2%, Forecast 0.3%, Previous 0.3% at 07:00.

(GBP) BoE Gov Bailey Speaks at 13:30.

(EUR) Industrial Production (MoM) (Aug) Forecast 0.1%, Previous –1.1% at 14:30.

(EUR) ECB President Lagarde Speaks at 18:30.