Today, the DAX 40 continued its decline, trading at 17,241.87 after opening at 17,721.02, influenced by the sharp selloff in Japanese markets and economic concerns in Asia.
Key Points
- The DAX 40 fell 1.80% last Friday, closing at 17,721.02 due to global market sell-offs and weak US jobs data.
- Rising interest rates are worsening the DAX 40 selloff, impacting corporate earnings.
- Higher US unemployment data caused significant losses in tech and auto sectors, including SAP and BMW.
DAX 40 Daily Price Analysis – 05/08/2024
The DAX 40 experienced a significant decline last Friday, closing at 17,721.02, down from its opening price of 18,045.83. This represents a substantial 1.80% drop. The decline was primarily driven by global market sell-offs, particularly influenced by the weak US jobs report, which heightened concerns about the economic outlook and potential tightening of monetary policy by central banks.
As of today, the DAX 40 has continued its downward trajectory, opening at 17,721.02 and currently trading at 17,241.87, marking a further 2.70% decline. The market sentiment remains bearish as investors react to the sharp selloff in Japanese markets, where the Nikkei 225 plunged 12.4%, the largest single-day drop since 1987, due to the rapid appreciation of the yen against the dollar. This has fueled concerns about economic stability in Asia, influencing European markets.
The ongoing selloff in the DAX 40 is exacerbated by concerns over rising interest rates across major central banks, which are increasingly weighing on corporate earnings. Last week’s US jobs data showing higher-than-expected unemployment has added to the bearish sentiment, leading to significant declines in tech and auto manufacturing sectors. Key players like SAP, Zalando, and major automotive companies including BMW, Mercedes, and Volkswagen have seen substantial losses, contributing to the overall market downturn.
Key Economic Data and News to Be Released Today
While there are no high-impact economic data releases expected today, the market remains sensitive to any updates or news that could impact investor sentiment. Traders should keep a close eye on global market developments, particularly in Asia, and any statements from central banks that could influence interest rate expectations and market stability.
DAX 40 Technical Analysis – 05/08/2024
The overall trend of the Dax 40 chart below is distinctly bearish. The consistent lower highs and lower lows on the chart confirm this. The lack of upward momentum and the failure to breach the 200 EMA further indicate that the bearish trend is likely to continue in the short term.
The most likely scenario is the continuation of the bearish trend. The market may test lower support levels as selling pressure persists. The immediate support level is around the 17,100 mark. If this level is breached, the next significant support would be around 16,900.
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