. Daily Index Analysis - Europe's Stocks: Sanofi Woes, DAX 40 Opportunities

Daily Index Analysis – Europe’s Stocks: Sanofi Woes, DAX 40 Opportunities

Daily Index Analysis – Europe’s Stocks: Sanofi Woes, DAX 40 Opportunities

27 Oct 2023

Introduction:

Shifting focus to the Indices Market, Asian markets staged a rebound following a substantial sell-off. Notable gains were seen in Shanghai, Hong Kong, Japan, and elsewhere. In contrast, European shares trimmed losses after the ECB’s decision to keep interest rates steady. On the other side of the globe, U.S. stocks closed lower due to mixed earnings and strong economic data, leading to concerns about prolonged high-interest rates by the Federal Reserve.

Market In Focus for today – DAX 40

European stocks remained subdued on Friday, and France’s main stock index underperformed its counterparts due to a gloomy outlook provided by Sanofi. However, the rise in energy shares, driven by increased crude oil prices, acted as a counterbalance to limit the overall losses.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 14860.21 | Positive Crossover | Bullish
  • MA 20: 14953.82 | Negative Crossover | Bearish
  • MA 50: 15136.36 | Negative Crossover | Bearish

Simple:

  • MA 5: 14841.16 | Positive Crossover | Bullish
  • MA 20: 14925.78| Negative Crossover | Bearish
  • MA 50: 15186.40 | Negative Crossover | Bearish

RSI (Relative Strength Index): 43.39 | Neutral Zone| Neutral

Stochastic Oscillator: 65.5 | Buy Zone | Positive

Resistance And Support Levels:

  • R1: 14994.2 | R2: 15340.7
  • S1: 14871.9| S2: 14555.9

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion: Stop Sell : 14780.1 | Take Profit: 14555.9| Stop Loss: 14933.0.

Elsewhere in the Indices Market

Asia Markets rebounds after heavy sell-off.

The Shanghai composite is up at 0.99%. Overall, the Singapore MSCI down 0.97% to 271.45. Over in Hong Kong, the Hang Seng Index up 2.08% to 17,398.73. In Japan, the Nikkei 225 up 1.27% to 30,991.69, while the Topix index was up 1.37% to 2,254.65. South Korea’s Kospi up 0.16% to 2,302.81. Australia S&P/ASX 200 up 0.21% to, 6,826.90.

European shares pare losses as ECB holds rates steady.

The DAX futures contract in Germany traded 0.38 higher, CAC 40 futures in France down 0.46% to 6,857.61 and the UK 100 futures contract in the U.K. up 0.12% to 7,363.15.

Wall St ends lower on mixed earnings, robust data.

On Thursday, U.S. equities saw a significant decline, with technology and large-cap technology-related companies leading the way down. This drop came as investors absorbed a combination of varied quarterly earnings results and indications of economic strength, which might prompt the Federal Reserve to maintain higher interest rates for a longer duration than previously anticipated.

Indexes: Dow down 0.76%, S&P 500- down 1.18%, Nasdaq down 1.76%.

Corporate News:

Amazon.com, Inc. (AMZN) down 1.50% at 119.57, Tesla Inc. (TSLA) down 3.14% at 205.76, Walmart Inc. (WMT) down 0.61% at 161.77. Goldman Sachs Group Inc (GS) up 0.77% at 296.99, Morgan Stanley (MS) up 0.94% at 72.07.

Key Economic Events & Data Release Today:

(EUR) Spanish (GDP) (QoQ) (Q3) Actual 0.3%, Forecast 0.2%, Previous 0.5% at 03:00.

(EUR) EU Leaders Summit at 06:00

(CAD) Wholesale Sales (MoM) Previous 2.3% at 08:30.

(USD) Core PCE Price Index (MoM) (Sep) Forecast 0.3%, Previous 0.1% at 08:30.