- DAX 40[1]:Higher as Global Sentiment Improves.
- FTSE 100[2]:Gains as UK Earnings Filters Through.
- DOW JONES[3]:Cautiously Higher as Bank Earnings Continue.
What is Earnings Season and What to Look for in Earnings Reports?[4]
DAX 40: Higher as Global Sentiment Improves
The Dax[5] traded higher in European trade ending a difficult week on a positive note reaching a session high of 12773. Fears of a global economic slowdown have plagued stock markets for much of this week. According to economists at Deutsche Bank, Europe’s largest economy is headed for a recession and will shrink by about 1% in 2023. Declining natural gas[6] supplies, a downturn in the US and other headwinds will cause Germany to contract in the second half of this year which could have negative implications on the constituents of the index.
Green dominates the sectoral breakdown with consumer cyclicals and industrials posting gains of 2.8% and 2.3% respectively.
DAX 40 Daily Chart - July15, 2022
Source: IG
From a technical perspective, we continue to trade below the psychological 13000 level having come close to the year-to-date lows.
Yesterday’s daily candle closed as a hanging man candlestick[7], however we have since bounced aggressively. An end of the week recovery rally may reach the low of 23 June at 12839 which may provide some resistance. Slightly further up sits the mid-June low at 12944 which may also act as resistance, together with the more significant psychological level 13000 high from last Friday which may be the best opportunity for would-be-sellers to get back involved.
Key intraday levels that are worth watching:
Support Areas
Resistance Areas
FTSE 100: Gains as UK Earnings Filter Through
