The European Central Bank’s meeting on Thursday is expected to tackle rising inflation and weak demand in the eurozone. Any signs of a rate change could shake up the markets later in the week.
Key Points
- The DAX 40 rose 1.21% on Monday, led by Sartorius and Siemens Energy.
- Market sentiment is focused on upcoming US inflation data and the ECB decision.
- The DAX is down 0.28% today as traders await key economic reports.
DAX 40 Daily Price Analysis – 10/09/2024
On Monday, the DAX 40 index surged by 1.21%, closing at 18,481.62, boosted by a general upswing in European equities. Key contributors to this upward movement were stocks such as Sartorius, which gained 5.52%, Siemens Energy at 3.19%, and Deutsche Bank at 2.47%. These positive performances helped the index recover from early losses, despite some downward pressure from Adidas (-3.04%) and Bayer (-0.80%).
The market sentiment was buoyed by the broader expectation of forthcoming economic data, notably the US inflation report and the ECB’s policy decision later this week. Although no significant economic statistics were released from Germany on Monday, investors focused on key corporate earnings, which provided some tailwind for the index.
As of today, the DAX 40 has edged lower by 0.28%, trading around the 18,430 level. This slight dip comes as traders await high-impact economic data, notably the US CPI report and the ECB, which could provide clues on the Federal Reserve’s monetary policy path.
In terms of sectoral performance, tech stocks have continued to gain, with SAP benefiting from Oracle’s strong earnings report, while industrials like Airbus and Deutsche Post are seeing moderate gains. However, the auto sector, led by BMW, remains under pressure amid broader concerns about inflation.
Key Economic Data and News to Be Released Today
Though today is relatively quiet on the economic data front, market participants are looking forward to tomorrow’s US inflation data and the ECB meeting on Thursday. The ECB is under pressure to address persistently high inflation and weak demand across the eurozone. Traders anticipate a potential signal on interest rates, which could inject volatility into the DAX later in the week.
DAX 40 Technical Analysis – 10/09/2024
The current price action on the Dax 40 Index is at best range-bound with a little bearish tendencies. The price is currently below the 200 EMA, however, there’s no convincing break of structure to the downside confirming the bearish bias.
The RSI is also struggling to make a decisive movement above or below the level 50. Given this consolidating market status, day traders or short-term traders are better advised to sit on their hands until a clear breakout either to the upside or downside is detected.
Dax 40 Fibonacci Key Price Levels 10/09/2024
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 |
| 18323.05 | 18503.99 |
| 18267.18 | 18559.88 |
| 18176.69 | 18650.35 |
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.
