- DAX 40[1]:Edges Lower as Eurozone Inflation Hits New All-Time-High.
- FTSE 100[2]:Hits Three-Week High as UK Inflation Surges.
- DOW JONES[3]:Loses Steam as the Safe Haven Bids Return.
What is Earnings Season & What to Look for in Earnings Reports?[4]
DAX 40: Retreats Despite Positive News Regarding Russian Gas Flows
The Dax retreated in European trade, failing to continue the global rally on the back of healthy corporate earnings and growing confidence in the expected resumption of Russian gas supply to Europe, easing fears of a regional energy crisis.
Russian gas flows via the Nord Stream 1 pipeline are likely to restart on time on Thursday after the completion of scheduled maintenance, Reuters reported citing sources, easing investors' concerns about gas supply to Europe.Still, gains are likely to be limited as investors await Thursday’s important European Central Bank meeting, which is widely expected to result in the central bank’s first interest rate hike since 2011.
Uniper, Germany's largest importer of Russian gas, is losing cash daily as it is forced to buy supplies at much higher prices from alternative sources because Gazpromhas reduced deliveries.Uniper could be allowed to pass on some of its higher gas costs to consumers under the terms of a rescue package being discussed with the German government, sources told Reuters on Wednesday. This stands to only increase the cost of living among Germans who like many other citizens globally are feeling the pinch of rising prices.
DAX 40 Daily Chart - July 20, 2022
Source: IG
From a technical perspective, Yesterday saw a bullish push and daily candle close above the key psychological 13000 level[5] as well as the previous resistance area around 13300. Gains were capped as we tapped into the 50-SMA (simple moving average) this morning
