German banks and the broader European markets faced significant declines, with retail and tech stocks also underperforming.
Key Points
- The DAX 40 fell to 18,526.38 on June 10 due to Eurozone political uncertainties.
- Today, the DAX 40 dropped further to 18,373.18 amid investor caution.
- Key economic events include an ECB speech, an upcoming US CPI report, and a Fed decision.
DAX 40 Daily Price Analysis – 11/06/2024
On Monday, the DAX 40 closed at 18,526.38, down by 0.11% from its open price of 18,546.67. This decline continued the downward trend from the previous trading session, where the DAX also experienced a drop. Investor sentiment was negatively impacted by political uncertainties in the Eurozone, particularly due to French President Emmanuel Macron’s call for a snap general election following the European election results. This political development spurred concerns about a potential shift towards far-right policies, which could influence the European Central Bank’s (ECB) future rate-cut decisions.
Additionally, the broader European markets were dragged down by the CAC 40, which saw significant declines. German banks, such as Commerzbank and Deutsche Bank, faced notable losses, further weighing on the DAX. Retail and tech stocks also saw declines, though the automotive sector had a mixed performance with some gains in specific stocks like Mercedes Benz Group and Porsche.
Today, the DAX 40 has opened at 18,526.38 but has since dropped to 18,373.18, reflecting a decrease of 0.83%. This early trading session downturn is likely influenced by continued investor caution ahead of significant economic events. The market remains jittery due to ongoing political uncertainties and the anticipation of upcoming economic data releases.
Key Economic Data and News to Be Released Today
Today’s economic calendar includes a key speech from ECB Chief Economist Philip Lane. Investors will watch keenly for insights into the ECB’s stance regarding inflation, economic outlook, and future interest rate cuts. Given the recent rate cut, Lane’s comments could provide crucial direction for the market.
The US CPI report and the Fed’s interest rate decision, scheduled for Wednesday, June 12, are expected to be high-impact events. Higher-than-expected inflation figures and a more hawkish Fed stance could lead to significant market movements, affecting DAX-listed stocks and broader investor sentiment across European markets.
DAX 40 Technical Analysis – 11/06/2024
The Dax is heavily bearish from the higher timeframe down to the 15-minute timeframe. Short-term traders might look for clear price action entry to ride the trend down today. However, looking at the chart, the price is currently at a support level.
Additionally, the RSI is oversold. This suggests that we might have a bit of retracement before the downward movement continues. So, taking some extra precautions before jumping on a trade today is advisable.
Dax 40 Fibonacci Key Price Levels 11/06/2024
Short-term traders planning to trade the Dax index today should keep a close eye on the following key price levels for the day:
| Support | Resistance |
| 18,406.00 | 18,549.02 |
| 18,361.83 | 18,593.19 |
| 18,290.32 | 18,664.70 |
Risk Disclosure: The information provided in this article is not intended to give financial advice, recommend investments, guarantee profits, or shield you from losses. Our content is only for informational purposes and to help you understand the risks and complexity of these markets by providing objective analysis. Before trading, carefully consider your experience, financial goals, and risk tolerance. Trading involves significant potential for financial loss and isn't suitable for everyone.
