- DAX 40[1]:Struggles as German State Inflation Data Fails to Inspire.
- FTSE 100[2]:Runs Out of Steam as Fears of a Global Slowdown Return.
- DOW JONES[3]: Higher Following Yesterday’s Rout Amid Grim Consumer Confidence Picture.
DAX 40: Struggles as German State Inflation Data Fails to Inspire
The Dax[4] struggled in early European trade before recovering some losses as we approach the US Market open.
The news was positive in Germany, as the state of North Rhine-Westphalia, Germany's largest state by population said consumer prices fell in the month of June. That was the first drop in the annual rate since January and fostered hopes that headline inflation may be peaking in Germany, having reached 7.9% on the year in May.
Spanish inflation unexpectedly jumped 10% from a year ago in June, data showed Wednesday, a new 30-year high and up from 8.5% in May.
Investors will be keeping an eye on a meeting ofEuropean Central Bank (ECB)[5] officials in Sintra, Portugal. ECB President Christine Lagardealong with Federal Reserve Chair Jerome Powell and Bank of England Governor Andrew Bailey will appear at a panel discussion Wednesday, starting at 13h00GMT.
The sectoral breakdown is not pretty as red dominates with healthcare and real estate posting losses of 3% and 2.9% respectively.
DAX 40 Daily Chart- June 29,2022
Source: IG
From a technical perspective, Yesterday saw a retest of the resistance area 13275 before rejecting and forming a shooting star candlestick pattern on the daily timeframe.
How To Trade Shooting Star Candlestick Patterns[6]
We have pushed down during the European session but need a sustained push to the downside followed by a daily candle close below the 13000 area to confirm downside momentum. The key psychological level 13000 continues
