ECB Ready To Shake European Indices – Key Levels For DAX & CAC

The European stock indices plunged dramatically as the investors trade the hawkish sentiments from the ECB. This is how interest rate...


The European stock indices plunged dramatically as the investors trade the hawkish sentiments from the ECB. This is how interest rate typically impacts the market.

Hawkish Sentiment – The global central banks are coming up with the contractionary monetary policies. The Bank of England raised its interest rates a couple of months ago, the Federal Reserve also raised the rates in December and the Bank of Canada joined the race by increasing the interest rate in the previous week.

Therefore, the investors are also expecting some action from Mr. Draghi. Though ECB isn’t expected to hike the rate, we may hear something hawkish from Mario Draghi. It can be talks on tapering the Asset Purchase Program.

The increased cost of capital reduces the profitability of corporate sector and in response, the investors pay fewer dividends. That’s the whole story behind the bearish movements of DAX and CAC. Let’s take a look at key trading levels.

DAX – GER30 – Trading Levels

Support     Resistance

13519.31    13598.39

13479.02    13637.18

13440.23    13677.47

Key Trading Level:    13558.1

CAC – FRA40- Trading Levels

Support     Resistance

5515.71       5560.91

5496.17       5586.57

5470.51       5606.11

Key Trading Level:    5541.37

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

Related Articles

Comments

0 0 votes
Article Rating
Subscribe
Notify of
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

HFM

Doo Prime

XM

Best Forex Brokers