. Daily Index Analysis - DAX 40 Leads European Stocks to 3-Week Highs

Daily Index Analysis – DAX 40 Leads European Stocks to 3-Week Highs

Daily Index Analysis – DAX 40 Leads European Stocks to 3-Week Highs

12 Oct 2023

Introduction:

In the ever-shifting landscape of global indices, Asia’s stock markets make notable strides as optimism surges on the prospects of Chinese stimulus measures and a global retreat in yields. The Shanghai composite soars by 0.94%, and the Hang Seng Index in Hong Kong surges by 1.93%. Japan’s Nikkei 225 and South Korea’s Kospi also experience robust gains, reflecting a positive sentiment. Meanwhile, European stocks reach three-week highs as concerns over interest rate hikes ease, with the DAX, CAC 40, and UK 100 futures pointing upwards. In the United States, Wall Street advances following the release of the Federal Reserve’s minutes, instilling confidence in a stable interest rate environment. These developments underscore the intricate interplay of economic factors influencing the world’s key indices.

Market In Focus for today – DAX 40

On Thursday, European equities reached three-week highs, helped along by a new wave of reductions in the rates on government bonds, as investors found solace in the dovish comments made by Federal Reserve officials.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 15595.74 | Positive Crossover | Bullish
  • MA 20: 15448.06 | Positive Crossover | Bullish
  • MA 50: 15481.68 | Positive Crossover | Bullish

Simple:

  • MA 5: 15597.9 | Positive Crossover | Bullish
  • MA 20: 15366.8| Positive Crossover | Bullish
  • MA 50: 15454.3 | Positive Crossover | Bullish

RSI (Relative Strength Index): 64.86 | Buy Zone | Bullish

Stochastic Oscillator: 100.00 | Buy Zone | Neutral

Resistance And Support Levels:

  • R1: 15686.6 | R2: 15956.4
  • S1: 15513.9| S2: 15314.2

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Stop Buy : 15745.9 | Take Profit: 15956.4 | Stop Loss: 15605.6.

Elsewhere in the Indices Market

Asia stocks advance amid China stimulus hope, Global yield retreat.

The Shanghai composite is up at 0.94%. Overall, the Singapore MSCI up 0.61% to 286.98. Over in Hong Kong, the Hang Seng Index up by 1.93% to 18,238.21. In Japan, the Nikkei 225 up 1.75% to 32,494.66, while the Topix index was up 1.50% to 2,307.84. South Korea’s Kospi up 1.21% to 2,479.82. Australia S&P/ASX 200 up 0.37% to, 7,091.00.

European stocks touch three-week highs on easing interest rate concerns.

The DAX futures contract in Germany traded 0.54 higher, CAC 40 futures in France up 0.44% to 7,162.54 and the UK 100 futures contract in the U.K. up 0.65% to 7,669.68.

US Wall Street advances after Fed Minutes.

After a turbulent day on Wednesday, Wall Street’s major indexes ended the day higher as policy makers’ caution was evident in the minutes from the U.S. Federal Reserve’s most recent meeting, which encouraged investor expectations that interest rates would remain stable.

Indexes: Dow up 0.19%, S&P 500- up 0.43%, Nasdaq up 0.71%.

Corporate News:

Netflix Inc (NFLX) down 1.98% at 365.93, Tesla Inc. (TSLA) down 0.24% at 262.99, Apple Inc. (AAPL) up 0.79% at 179.80. JPMorgan Chase & Co (JPM) up 0.34% at 146.15, Morgan Stanley (MS) down 1.54% at 78.90.

Key Economic Events & Data Release Today:

(GBP) Manufacturing Production (MoM) (Aug) Actual –0.8%, Forecast –0.4%, Previous –0.8% at 11:30.

(GBP) GDP (MoM) (Aug) Actual 0.2%, Forecast 0.2%, Previous –0.5% at 11:30.

(EUR) ECB Publish Account of Monetary Policy Meeting at 17:00.

(USD) Core CPI (MoM) (Sep) Forecast 0.3%, Previous 0.3% at 18:00.

(USD) Initial Jobless Claims Forecast 210K, Previous 207K at 18:00.

(USD) Crude Oil Inventories Forecast 0.492M, Previous –2224M at 20:30.