. Daily Index Analysis - DAX 40 Surges on U.S. Inflation Dip, Anticipates Fed Shift.

Daily Index Analysis – DAX 40 Surges on U.S. Inflation Dip, Anticipates Fed Shift.

Daily Index Analysis – DAX 40 Surges on U.S. Inflation Dip, Anticipates Fed Shift.

15 Nov 2023

Introduction:

In the world of indices, Asian stocks surge as U.S. inflation retreats and China surprises with positive data. Notable gains include the Shanghai composite at 0.55%, Hong Kong’s Hang Seng up 3.92%, and Japan’s Nikkei 225 rising 2.52%. Meanwhile, European shares closed at a one-month high on the back of subdued U.S. inflation, and Wall Street rallies with the S&P 500 and Nasdaq posting significant gains, suggesting the Federal Reserve may have concluded its interest rate hikes.

Market In Focus for today – DAX 40

On Tuesday, European stocks concluded at a level not seen in a month, buoyed by data indicating a slowdown in U.S. inflation. This fostered expectations that the Federal Reserve had concluded its series of interest rate hikes and might soon initiate a policy of monetary easing.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 15627.30 | Positive Crossover | Bullish
  • MA 20: 15414.87 | Positive Crossover | Bullish
  • MA 50: 15274.98 | Positive Crossover | Bullish

Simple:

  • MA 5: 15620.0 | Positive Crossover | Bullish
  • MA 20: 15373.2| Positive Crossover | Bullish
  • MA 50: 15147.06 | Positive Crossover | Bullish

RSI (Relative Strength Index): 76.56| Buy Zone| Bullish

Stochastic Oscillator: 100| Buy Zone | Positive

Resistance And Support Levels:

  • R1: 15727.7 | R2: 16090.6
  • S1: 15418.6| S2: 15149.8

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Stop Buy : 15835.2 | Take Profit: 16090.6| Stop Loss: 15667.2.

Elsewhere in the Indices Market

Asian stocks jump as US inflation recedes, China data surprises

The Shanghai composite is up at 0.55%. Overall, the Singapore MSCI down 1.24% to 274.50. Over in Hong Kong, the Hang Seng Index up 3.92% to 18,079.00. In Japan, the Nikkei 225 up 2.52% to 33,519.70, while the Topix index was up 1.19% to 2,373.22. South Korea’s Kospi up 2.20% to 2,486.67. Australia S&P/ASX 200 up 1.42% to, 7,105.90.

European shares close at one-month high on cooling US inflation.

The DAX futures contract in Germany traded 0.52 higher, CAC 40 futures in France up 0.66% to 7,232.93 and the UK 100 futures contract in the U.K. up 0.99% to 7,513.79.

Wall St rallies as data supports view Fed may be done hiking rates.

On Tuesday, the S&P 500 and Nasdaq recorded their most significant daily percentage increases since April 27, propelled by inflation data that was less robust than anticipated. This supported the perception that the Federal Reserve might have concluded its interest rate hikes.

Indexes: Dow up 1.4%, S&P 500- down 1.9%, Nasdaq up 2.4%.

Corporate News:

Amazon.com, Inc. (AMZN) up 2.65% at 146.37, Walt Disney Co (DIS) up 1.81% at 91.07, Apple Inc. (AAPL) up 1.43% at 187.44. Goldman Sachs Group Inc (GS) up 3.61% at 338.72, Morgan Stanley (MS) up 4.36% at 78.31.

Key Economic Events & Data Release Today:

(JPY) GDP (QoQ) (Q3) Actual –0.5%, Forecast –0.1%, Previous1.2% at 05:20.

(CNY) Industrial Production (YoY) (Oct) Actual 4.6%, Forecast 4.4%, Previous 4.5% at 07:30.

(GBP) CPI (YoY) (Oct) Actual 4.6%, Forecast 4.8%, Previous 6.7% at 12:30.

(USD) Core Retail Sales (MoM) (Oct) Forecast –0.2%, Previous 0.6% at 19:00.

(USD) Retail Sales (MoM) (Oct) Forecast –0.3%, Previous 0.7% at 19:00.

(USD) PPI (MoM) (Oct) Forecast 0.1%, Previous 0.5% at 19:00.