Thursday, 29 June 2017

What’s next? – DAX 29.06.17

Posted by Anonymous at 10:34 Labels:

DAX

The DAX index futures were 0.53 percent higher by 06:55 GMT to trade at 12,709 points. Market players kept an eye on incoming data from Germany and awaited key reports in the United States later in the session.

Earlier today, July’s consumer climate in Germany came in at 10.6, above an expected and previous reading of 10.4 points. Ahead in the session, the preliminary consumer price index for June is due for release as of 12:00 GMT, with analysts forecasting no changes from last month.

In the US session, attention will be directed to a fresh reading on the first-quarter gross domestic product at 12:30 GMT, with 1.2 percent seen. Initial jobless claims will also be published at that time. Analysts are seeing a 1,000 decline to 240,000.

St. Louis Federal Reserve President James Bullard is set to speak at 17:00 GMT, with investors continuing to follow Fed speakers in search for hints on the timing for the next rate hike.

On Wednesday, the index ended 0.19 percent lower in Frankfurt. Software, utilities and basic resources weighed on German stocks.

Dragging the index downwards, RWE AG ST O.N. falling 2.36 percent to 17.965, followed by E.ON down 1.28 percent to 8.574 and Henkel & Co KGaA dropping 1.20 percent to 124.00.

Contributing to gains, we saw Lufthansa AG VNA O.N. soaring 3.57 percent to 20.030, Commerzbank AG O.N. moving up 3.21 percent to 10.260 and Deutsche Bank AG NA O.N. earning 1.42 percent to 15.740 by the end of the session.

As we predicted yesterday, the index found strong support at the lower band of the current 12,550 - 12,950 range and retreated to the middle, where it’s gradually recovering bullish momentum to try once again the 12,900 resistance.

We expect further consolidation ahead of Friday’s consumer inflation in the US, a report that could certainly modify market expectations regarding next Federal Reserve steps.

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