Thursday, 13 July 2017

What’s next? – DAX 13.07.17

Posted by Anonymous at 10:01 Labels:

DAX

The DAX futures traded 1.67 percent higher at 12,626.00 points as of 06:05 GMT, with market players looking ahead of further remarks from Fed Chair Janet Yellen and key economic data.

Earlier in the session, the German consumer price index came in at 0.2 percent in June, aligned with market analysts’ expectations and equal to the previous month reading.

On Wednesday, Yellen said the US economy remains strong in terms of labor market and growth, but warned that it’s premature to tell if inflation will reach the bank’s 2 percent target.

“It’s premature to reach the judgment that we’re not on the path to 2 percent inflation over the next couple of years,” Yellen explained before the House Financial Services Committee.

Yellen is set for speak once again today as of 14:00 GMT. Investors will keep an eye on her speech in search for hints over the future of interest rates and the balance sheet reduction.

The DAX closed at 12,626.58 in Frankfurt on Wednesday, adding 189.56 or 1.52 percent in the day, with utilities, transportation and technology contributing the most to gains.

Top performers of the session included Infineon Technologies AG NA O.N., which added 2.88 percent to end at 19.260. E.ON SE NA grew 2.73 percent to trade at 8.589 by the closing bell. Deutsche Post AG NA O.N. rose 2.70 percent to 34.000.

Among those heading south, Commerzbank AG O.N. dropping 1.61 percent to 10.970, Deutsche Bank AG NA O.N. falling 0.90 percent to 16.440 and Prosiebensat 1 Media AG notching down 0.40 percent to 33.885.

From a technical perspective, the index has been able to break above the 12,500, 12,600 and now it’s looking at the 12,650 level as immediate resistance. In case it breaks that mark, the next target will be 12,750.

At this stage, there aren’t really strong growth factors pushing the index higher, but rather a general improvement in sentiment. In the long run, the 13,000 continues to be eyed by buyers, although they remain quite far from it.

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