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DAX, DOW and FTSE indices mixed as global growth signals slow -by Ecork

  • DAX 40:At the bottom of the back of the dismal eurozone data.
  • FTSE 100 Index:Steady as inflation rises in UK debt costs.
  • Dow Jones:lukewarm as markets ponder recession fears.

DAX 40: marginal decline on dismal eurozone data

The Dax European trade is struggling this morning as dismal data from the Euro-Zone fueled recession fears. While a Reuter poll published earlier on Thursday predicted a one in three chance of a recession in the bloc within 12 months. We had a lot of European PMI data this morning out of France, Germany and the Eurozone. Rising prices in the eurozone reduced demand for manufactured goods in June at the fastest rate since May 2020, when the coronavirus pandemic was spreading. The main factory of S&P Global Purchasing Manager Index (PMI) It fell to a two-year low near 52.0 from 54.6. The German manufacturing PMI also suffered a blow to the European industrial economy slumping from 54.0 to 52.0, which will undoubtedly have a negative impact on the components of the DAX 40.

Segmentation is thus mixed while individual actuators are affectedd through many broker moves. The only notable mover was Deutsche Bank AG, which was down 4.80% during the session as we approached the US market.n.

DAX 40 Daily Chart – June 23, 2022

source: IG

Technically, we had a bearish close (weekly candle) last week which closed below the key the support who – which resistance turned In the 13270 area. Yesterday’s daily close a Three Pin Candle Stick formation – composition At the resistance area 13270, which indicates the possibility of further decline.

A daily candlestick close below the 12950 area may result in a retest of year-to-date lows. A bounce from here could lead to a retest of the 13270 area.

Key levels that might be worth watching during the day:

the support Regions

resistance zones

FTSE 100: Steady as UK debt cost inflation rises

The FTSE indexdown by about 0.50% on me European Opening Thursday The British government borrowed more than expected last month due to rising inflation. Data from the Office for National Statistics (ONS) showed that cInvestor Rishi Sunak borrowed another £14bn ($17bn) in May, £2bn more than Citi economists had expected.May’s borrowing raised the national debt, excluding public sector banks, to 2.36 trillion pounds, or about 95.8% of GDP.“Rising inflation and rising interest costs on debt pose a challenge to public finances, as are household budgets,” Sunak said in a stat.an item.

Meanwhile, UK passengers had to deal with repeated widespread rail stops on Tuesday. The RMT union said the general strike would continue after deal talks collapsed.

New data on Thursday showed that UK manufacturers were hit by a slowdown in demand and new orders amid an impending recession.According to a Standard & Poor’s Global survey, the aggregate composite PMI for June, which tracks activity in the economy, was unchanged at 53.1, however, this month’s growth in new orders was the weakest since March 2021.

FTSE recovered as the session continued, trading flat– to marginally lower We are approaching the United States Market Open. The energy sector was the biggest gainer during the session by 1.6%, while the energy sector was among the most prominent gainers, such as Ocado Group PLC, BP ​​PLC and Shell PLC with gains of 3.7%, 2% and 1.5%, respectively.

FTSE 100 Daily Charts – 23 June 2022

DAX, DOW and FTSE indices mixed as global growth signals slow

source:IG

The FTSE closed as a bearish daily engulfing candle of the 7150 resistance area, which indicates the potential for more downside. I’ve since backed off the resistance to fly right over the switch psychological level from 7000. At this point, we look in a range between the resistance at 7150 and the latest support at the 6950 area. The intraday range may provide an opportunity if we are unable to break the support or resistance levels at 6950 and 7150 respectively.

Key levels that might be worth watching during the day:

the support Regions

resistance zones

Dow Jones: tepid as markets reflect on recession fears

US equivalentThe US market was mixed as the initial drop of around 200 pips was wiped out as we approached the US market open. The trend continues yesterday as US stocks swing back and forth between losses and gains. Bond yields fell as comments before Chairman of the Federal Reserve Jerome Powell and Europe’s growth data stoked fear of global deflation. US 10-year bond yields traded near a two-week low of 3.08%. chair Powell acknowledged that sharp increases in interest rates could trigger a recession in the United States, and said the task of engineering an easy economic downturn was “very difficult” in Senate testimony. on me Wednesday.

Money markets are indicating diminishing prospects for the central bank to raise interest rates beyond the end of the year, and increasing prospects for a rate cut from May 2023. This may partly explain the swing in US stocks between gains and losses as markets debate how far the Fed will extend its price cycle.

On the calendar front, we still have the S&P Global Composite PMI, Fed stress test results and of course Fed Chair Powell’s testimony before the House Financial Services Committee.

DAX, DOW and FTSE indices mixed as global growth signals slow

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DOW JONES Daily Chart – June 23, 2020

DAX, DOW and FTSE indices mixed as global growth signals slow

source:IG

Technically, yesterday’s daily candlestick close did not provide any clear indication, and the close is inconclusive. A range is currently defined on the daily chart between 31000 and 29500 areas. Unless we get a daily candle that closes above the resistance area (31000) or closes below the support (29500) then we are likely to stay bound domain. There may be opportunities during the day inside Domain.

Key levels that might be worth watching during the day:

the support Regions

resistance zones

By: Zain Fouda, Market Writer for DailyFX.com

Connect with Zain and follow her on Twitter: Tweet embed

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