DAX 40[1]:Moves Higher as ECB President Christine Lagarde Vows Nimble ECB Policy.
- FTSE 100[2]:Rallies Higher as Commodity Linked Stocks Thrive.
- DOW JONES[3]: Gains as Inflation Risks Fail to Sour Sentiment.
DAX 40: Moves Higher as ECB President Christine Lagarde Vows Nimble ECB Policy
The Dax[4] opened in the green in European trade on the back of news that China will ease its covid restrictions. The latest GfK German consumer climate index fell to -27.4 in July from a revised -26.2 the previous month, as shoppers in the Eurozone’s largest economy struggled with hefty price rises.
Investors will be keeping an eye on a meeting ofEuropean Central Bank (ECB)[5] officials in Sintra, Portugal. ECB President Christine Lagarde opened proceedings today and offered reassurances stating that any new anti-crisis instrument yet to be announced won’t stand in the way of rate hikes to combat inflation.
Meanwhile, European Central Bank (ECB)[6] member Martins Kazaks reiterated his belief that rates could be raised “quite quickly” should the need arise. He told Bloomberg TV that if the ECB hiked 25 bp in July then a 50 bp move in September would be needed.
The sectoral breakdown is broadly positive with healthcare and industrials leading the way while Utilities and real estate lag. Among the notable movers of the session, we have Porsche Automobil Holdings SE, Airbus SE and Siemens Healthineers leading the way with 3.5%, 2.2% and 1.8% respectively.
DAX 40 Daily Chart- June 28, 2022
Source: IG
From a technical perspective, we have bounced since creating a new monthly low (12833) last week. Yesterday looked promising as it seemed as though we may have a daily candle close above key resistance area at 13275 (See chart). Once again, we
