- DAX 40[1]: Market sentiment drags DAX lower
- FTSE 100[2]: UK growth slumps, BOE comes into focus
- DOW JONES[3]: US Inflation sparks sell-off, Fed Meeting eyed
DAX 40: Market Sentiment drags DAX further down
European Equities opened lower this morning with any hopes of plateauing inflation wildly off the mark. This follows the European Central Bank confirming late last week that it intends to hike interest rates by 25 basis points in July, with another rate increase expected in September.
Focus now shifts to the FOMC Economic projections[4] and the Federal Reserve interest rate decisionthat is expected to take place on Wednesday. At the time of writing, the German DAX has declined by approximately 200 points since the start of the European Session.
DAX 40 One-Hour Chart- June 13,2022
Source: TradingView
As shown on the hourly chart above, the Dax has declined sharply since last week’s break of the Head and Shoulders pattern, declining 1000 points from 14480 to today’s lows of around 13430.
DAX 40 Daily Chart- June 13,2022
Source: Tradingview
From a longer-term view,the Daily Chart shows the decline from the key psychological level of 15000 and is currently trading below trendline support (taken from the March low). If the downtrend remains intact, further downward pressure could see the 13270 level coming back into play, leaving the door open for the key psychological level[5] of 13000.
FTSE 100:UK growth slumps, BOE comes into focus
The FTSE 100 has continued its decline from last week, posting its largest weekly fall in 3 months. With UK GDP (April) coming in below expectations, pressure may mount on the Bank of England to hike rates further as inflation jumped to a four-decade high of 9% in April. All eyes now
