Daily Index Analysis – Europe’s Market Turmoil: DAX 40 Shaken, Investors Seek Safety
26 Sep 2023
Global indices experienced a mixed day with a predominant theme of concern over a hawkish Federal Reserve stance and persistent fears surrounding China’s economic stability. Asian markets dipped, led by Shanghai’s 1.07% decline, while European shares followed suit as firmer yields and China-related worries weighed on investor sentiment. In contrast, Wall Street managed gains, driven by positive performance in the oil and Amazon.com sectors, as investors closely monitored interest rate projections ahead of economic data releases and Federal Reserve statements later in the week.
Market In Focus for today – DAX 40
On Tuesday, European equities continued to decline as high bond yields put pressure on the rate-sensitive technology sector. At the same time, weakness in firms with exposure to China persisted due to concerns over the world’s second-largest economy’s slowdown.
- MA 5: 15530.09 | Negative Crossover | Bearish
- MA 20: 15686.44 | Negative Crossover | Bearish
- MA 50: 15767.74 | Negative Crossover | Bearish
- MA 5: 15544.21 | Negative Crossover | Bearish
- MA 20: 15740.05| Negative Crossover | Bearish
- MA 50: 15781.58 | Negative Crossover | Bearish
RSI (Relative Strength Index): 31.08 | Sell Zone | Bearish
Stochastic Oscillator: 7.37 | Sell Zone | Negative
Resistance And Support Levels:
- R1: 15595.5 | R2: 15860.5
- S1: 15391.7 | S2: 15126.7
Overall Sentiment: Bearish | Market Direction: Sell
Trade Suggestion: Stop Sell : 15333.9 | Take Profit: 15125.1 | Stop Loss: 15494.0.
Elsewhere in the Indices Market
Asian stocks sink on hawkish Fed outlook, China fears persist.
The Shanghai composite is down at 1.07%. Overall, the Singapore MSCI up 1.00% to 282.65. Over in Hong Kong, the Hang Seng Index down by 1.48% to 17,466.90. In Japan, the Nikkei 225 down 1.11% to 32,315.05, while the Topix index was down 0.57% to 2,371.94. South Korea’s Kospi down 0.49% to 2,495.76. Australia S&P/ASX 200 is down 0.54% to, 7,038.20.
European shares slide as firmer yields, China woes weigh.
The DAX futures contract in Germany traded 0.70 lower, CAC 40 futures in France down 0.74% to 7,070.83 and the UK 100 futures contract in the U.K. up 0.01% to 7,624.87.
Wall Street gains as investors pay attention to the rate forecast.
The major Wall Street indices rose on Monday, helped by gains in the oil and Amazon.com sectors as Treasury yields increased further as investors awaited information on the direction of interest rates from economic data and Federal Reserve governors’ comments later in the week.
Indexes up: Dow 0.13%, S&P 500- 0.04%, Nasdaq 0.45%.
Netflix Inc. (NFLX) up 1.31% at 384.80, Nike Inc. (NKE) is down at 0.28% at 90.60, and Amazon.com, Inc. (AMZN) up at 1.67% at 131.27. JPMorgan Chase & Co (JPM) up 0.49% at 146.45, and Morgan Stanley (MS) down 0.31% at 83.03.
Key Economic Events & Data Release Today:
(USD) Building Permits Forecast 1.543M, Previous 1.443M at 17:30.
(CAD) Manufacturing Sales (MoM) Previous 1.6% at 18:00.
(USD) CB Consumer Confidence (Sep) Forecast 105.5, Previous 106.1 at 19:30.
(USD) New Home Sales (Aug) Forecast 700k, Previous 714K at 19:30.