- German Factory Orders Performing Better than Expected in June 0.4% Drop Vs 0.8% Expected.
- Earnings Continue to Provide a Boost.
- Key Resistance Area now in Focus Around 13800-14000.
What is Earnings Season & What to Look for in Earnings Reports
DAX 40: Rally Helped by German Factory Orders with Technical Roadblocks Ahead
The DAX[1] continued its rally in European trade helped by largely positive quarterly corporate earnings and better-than-expected German factory orders. Global sentiment improved during yesterday’s New York session following the conclusion of US Representative Nancy Pelosi’s visit to Taiwan.
German factory orders performed better than expected in June, falling 0.4% on the month rather than the 0.8% expected in a month overshadowed by a growing energy crisis. Dampening the mood ever so slightly was a warning from recently bailed out German Utility provider Uniper SE that it may have to cut output at two key coal-fired power plants in Germany as the company struggles to get fuel supplies along the Rhine River. This development is exacerbating an energy crunch that has threatened to push the continent’s largest economies into recession. Water levels on the Rhine have fallen so low that the river may effectively close soon. After the news broke German power prices for next year jumped to record levels of 410.57 Euros per megawatt-hour on the European Energy Exchange.
Corporate earnings continue to provide a boost to markets with two of Europe's biggest clothing companies rising in early trade on Thursday as their quarterly reports avoided fresh disappointments after recent profit warnings.Adidas AG (ADSGN) stock rose 2.4% in Frankfurt after the sports apparel giant reported a 4% rise in sales in the second quarter, even after adjusting for the euro[2]'s slide during the period. Online fashion powerhouse Zalando (ZALG) rose
