. Daily Index Analysis - DAX 40 Turmoil, Bayer's Plunge Shakes European Markets

Daily Index Analysis – DAX 40 Turmoil, Bayer’s Plunge Shakes European Markets

Daily Index Analysis – DAX 40 Turmoil, Bayer’s Plunge Shakes European Markets

20 Nov 2023

Introduction:

In the global indices market, Asian stocks display mixed results amid expectations of global interest rate cuts. Notably, the Shanghai composite rises, while Singapore’s MSCI sees a decline. Hong Kong’s Hang Seng Index and South Korea’s Kospi show gains, but Japan’s Nikkei 225 and Topix index experience losses. In Australia, the S&P/ASX 200 inches up. European shares remain subdued after a strong week, with DAX and CAC 40 futures showing slight movements. Wall Street’s performance is modest, with traders digesting recent gains and grappling with uncertainty over potential U.S. interest rate cuts following Federal Reserve comments.

Market In Focus for today – DAX 40

Following a robust week fuelled by substantial wagers on interest rate reductions, European shares displayed restraint on Monday. The healthcare sector and Germany’s benchmark index faced pressure as the drugs-to-pesticides group Bayer experienced a decline, hitting a more than 14-year low.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 15933.1 | Positive Crossover | Bullish
  • MA 20: 15712.3 | Positive Crossover | Bullish
  • MA 50: 15466.5 | Positive Crossover | Bullish

Simple:

  • MA 5: 15945.8 | Negative Crossover | Bearish
  • MA 20: 15664.4| Positive Crossover | Bullish
  • MA 50: 15328.8 | Positive Crossover | Bullish

RSI (Relative Strength Index): 73.96| Buy Zone| Bullish

Stochastic Oscillator: 79.87 | Buy Zone | Negative

Resistance And Support Levels:

  • R1: 15996.5 | R2: 16352.6
  • S1: 15700.8| S2: 15432.0

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Stop Buy : 16083.8 | Take Profit: 16352.6| Stop Loss: 15915.9.

Elsewhere in the Indices Market

Asian stocks market show mixed results amid global rate cut expectations.

The Shanghai composite is up at 0.46%. Overall, the Singapore MSCI down 0.76% to 273.77. Over in Hong Kong, the Hang Seng Index up 1.86% to 17,778.07. In Japan, the Nikkei 225 down 0.59% to 33,388.03, while the Topix index was down 0.77% to 2,372.60. South Korea’s Kospi up 0.86% to 2,491.20. Australia S&P/ASX 200 up 0.13% to, 7,058.4 0.

European shares muted after robust week.

The DAX futures contract in Germany traded 0.02 lower, CAC 40 futures in France up 0.36% to 7,259.68 and the UK 100 futures contract in the U.K. down 0.10% to 7,496.78.

Wall St barely gains as traders digest earlier gains, Fed comments.

On Friday, Wall Street’s three primary indices showed marginal gains as investors processed recent advances. However, the outlook became uncertain regarding the timing of potential interest rate cuts from the U.S. central bank due to remarks from Federal Reserve officials.

Indexes: Dow up 0.01%, S&P 500- up 0.13%, Nasdaq up 0.08%.

Corporate News:

Netflix, Inc. (NFLX) down 0.22% at 465.91, Tesla, Inc (TSLA) up 0.30% at 234.30, Apple Inc. (AAPL) down 0.11% at 189.69. Goldman Sachs Group Inc (GS) up 0.75% at 339.19, Morgan Stanley (MS) up 0.78% at 80.28.

Key Economic Events & Data Release Today:

(CNY) PBoC Loan Prime Rate (Nov) Actual 3.45%, Forecast 3.34%, Previous 4.20% at 06:45.

(EUR) ECB’s Lane Speaks at 10:30.

(EUR) German PPI (MoM) (Oct) Actual –0.1%, Forecast –0.1%, Previous-0.2% at 12:30.