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My General View on the Markets - Using the DAX as reference Point


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3 hours ago, Buddfox said:

 

Fed, ECB Surprise Drives Sentiment. Can DAX Recover?

DAX 40: DAX HIGHER AS ECB CALL UNSCHEDULED MEETING

European Equities are trading higher this morning as the regions bond’s advanced after the European Central Bank (ECB) announced an unscheduled meeting Wednesday to tackle volatile market conditions. Investors are looking to the ECB’s unscheduled meeting to give details on how it plans to keep bond yields of the region’s most vulnerable members in check.

This move follows a sharp widening in the spreads between the yields of Germany and more indebted southern nations, particularly Italy. Fears of stagflation driving stocks into a bear market while parts of the US yield curve remain inverted, signaling concerns that restrictive monetary policy will lead to an economic downturn.

Like most central banks the ECB is between a rock and a hard place, with high inflation, fragile economy and ever-rising energy costs any intervention to reduce risk will be welcomed.

Among the notable movers on the DAX were Continental Ag and Allianz who posted gains of 4% and 3.17% respectively.

image.png

DAX 40 Daily Chart- June 15,2022

German 40 Daily

Source: Tradingview

Technically the DAX has finally tapped the support area around the 13270 area, posting a low around 13220 before the D candle closed above support. We have seen a bullish morning on DAX as it rallied approximately 205 points during the European session to post a high of 13511.

Volatility could peak during the ECB meeting as well as the Federal Reserve Meeting later today. Intraday support may be found at 13389, 13208 and 13113 while resistance may be offered at 13665 and 13760 areas.

image.png

 

Jun 15, 2022 | DailyFX
Zain Vawda

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