DAX Opens Flat After Larger than Expected Decline in PPI
Producer prices fell by 3.3% YoY in April, better than the expected -3.2%, and a substantial improvement from -2.9% last month.
Producer prices fell by 3.3% YoY in April, better than the expected -3.2%, and a substantial improvement from -2.9% last month.
Lower production prices make German companies even more competitive than they are compared to their peers. While the CAC is down 0.36%, the FTSE MIB down 0.74%, and the FTSE down 0.21% the DAX is only down 0.07%.
We can expect stocks to be choppy as we await the FOMC minutes, which the central bank releases tomorrow. The market is hoping to get clues as to how quickly we can expect the first rate cut.
However, given the most recent comments by Fed members it seems difficult to imagine that we might hear anything different to the message we’ve been hearing. That is that rates may have to stay high for longer, while the FOMC asses the available data.
Today’s largest gainers:
- Symrise 1.42%
- Covestro 0.72%
- MTU Aero 0.57%
Today’s largest losers:
- Bayer -2.04%
- Volkswagen -1.74%
- Siemens Energy -1.61%
Technical View
The day chart below for the DAX shows an ongoing bullish trend that has failed to make any significant price moves in the past 2 sessions. The decrease in volatility comes after the index hit an ATH of 18928and heavily retraced the next day.
The next support level is at 18634 (blue line) set by a previous high on April 1. Should that break, the following support is at 18237 (red line) set by a double top that formed in last week of April. To see this market regain bullish momentum we would need a close above the ATH of 18928.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
- Read our latest reviews on: Avatrade, Exness, HFM and XM
Related Articles
Sidebar rates
Related Posts
Save