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DAX and FTSE up, boosted by data and return of risk appetite -by Ecork

Dax: Higher as the Eurozone smashes GDP estimates despite Germany’s pause, driving up inflation.

  • FTSE 100 Index:Led by rising financial stocks as risk appetite returns.

Stock forecast for the third quarter of 2022

DAX 40: Higher as Eurozone GDP smashes though Germany falters, and inflation rises.

The Dax It traded higher in European trade as market sentiment boosted American technology profits Eurozone data surprises. The eurozone economy expanded more than economists expected, putting it on a firmer footing as rising inflation and the prospect of Russian power cuts threaten to push it into recession. Spain and Italy both posted second-quarter growth of 1% or more from the previous three months,Despite the surprise of the upside, the German economy number one in Europe fell into recession. hIn light of the persistent difficulties, inflation in the 19-nation currency bloc rose to a new record, exceeding expectations.Although GDP growth was still somewhat positive in the second quarter, demand is already declining significantly at this point. TheThe highest level ever Inflation figures Coincides with growing recession fears. Consumer prices jumped 8.9% in July with economics Estimationji character 8.7%. After slowing down in June, a measure of core inflation that also excludes energy and food hit a record 4%.

Increasing price pressures pushed European Central Bank To surprise economists by offering a half-point increase in the deposit rate this month. President Christine Lagarde said at the time that it was important to address any sign that inflation expectations were becoming entrenched. You will add the latest data to The European Central Bank is calling for the first rate hike since 2011 to follow up with another big step.

Earnings continue to liquidate from the Eurozone with several companies adjusting earnings forecasts for the second half of the year. Among the notable movers today, we have the Zalando SE with a gain of 7.9% during the session.

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DAX 40 Daily Chart – 29 Jul 2022

DAX and FTSE up, boosted by data and return of risk appetite

Source: IG

From a technical perspective, the daily chart shows the pricesFinally broke up 50-SMA. We reached a height level from the main psychological level (13,000) while Bullish Hammer Candlestick Printing Which indicates the possibility of more upside.

We are already moving up with the possibility that the price will test 100-SMA. Any bounce may provide an opportunity for potential buyers.

Key levels worth watching during the day:

the support Regions

resistance zones

FTSE 100: Financial stocks are driven higher due to risk appetite

The Leading Stock Index was led by financial stocks in European trade in what appears to be a positive month for stock markets.UK mortgage approvals fell more than expected in June, and consumers ramped up their borrowing, both signs that the cost of living crisis is tightening its grip on the economy.The decline in mortgage lending indicates a loss of momentum in the housing market, which has thrived during the pandemic. Lloyds Banking Group Plc, the UK’s largest mortgage lender, this week forecast house prices would grow just 1.8% this year and fall 1.4% in 2023.

NatWest today boosted guidance and shareholder returns as the state-backed lender announced first-half profit of £1.9 billion.The bank now expects a Annual basic income is around £12.5 billion, compared to more than £11 billion projected in April. Shares of NatWest rose 7.4%. Other big rises in the IAG index included owner British Airways as it reported a return to quarterly profit for the first time since the pandemic and said forward bookings showed “sustainable strength”. Leading movers Ocado PLC and Aveva Group PLC posted gains of 5.8% and 4.5%, respectively.

FTSE 100 Daily Chart – July 29, 2022

DAX and FTSE up, boosted by data and return of risk appetite

source:IG

The FTSE closed yesterday as a Drogee candlestick This indicates volatility which is surprising considering the bullish nature of the indices yesterday. However, we finally broke through 50% VIP level It was retested yesterday before closing higher. We are currently trading above the 20, 50 and 100 SMAs with the potential for a price rally. Any dip in price may provide better opportunities for potential buyers to participate.

Trading Ranges with Fibonacci Retracements

Key levels worth watching during the day:

the support Regions

resistance zones

Written by: Zain Fouda, Market Writer for DailyFX.com

Connect with Zain and follow her on Twitter: Tweet embed

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