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The DAX, DOW and FTSE indices rose on Tuesday’s positive risk tone -by Ecork

  • DAX 40:Moderately higher as European Central Bank President Christine Lagarde reiterated her intentions on interest rate.
  • FTSE 100 Index: The FTSE index continues to move ahead amid the biggest UK rail strike in 30 years.
  • Dow Jones: US stocks are streaming higher as we await testimony from Fed Chairman Powell.

DAX 40: Moderately higher as European Central Bank President Christine Lagarde confirms interest rate intentions

DAX Index It records moderate gains during the European session to follow yesterday’s gains at around 1.06%. Concerns remain about high rates slowing growth Which could lead to a global recession. The positive sentiment in Europe comes as global markets appear to be poised to rally after last week’s turbulent turmoilAnd the After several global central banks continued, or in some cases started Tighten monetary policy to tame overheating inflation.

Yesterday we had a testimonial from European Central Bank (ECB) President Christine Lagarde, who reiterated The central bank’s intention to raise interest rates in July and September even after the recent volatility in the Eurozone bond markets.

Rising inflation and high interest rates to combat this hectareE It led to institutional distress at companies in Germany, the United Kingdom, France, Spain and Italy that reached its highest levels since August 2020, according to the Weil European Distress Index.

Meanwhile, concerns have grown, as the deteriorating relationship between the European Union and Russia threatens to create even greater obstacles in the eurozone. Any disruption to energy supplies, especially to Germany, could leave Europe’s most industrialized economy reeling. This will undoubtedly have a negative effect on Dax and many of its components.

After seeing moderate gains this morning, no sector has emerged as discretionary to consumers andReal estate Leading the way with gains of 1.63% and 1.38%, respectively. While notable movers included auto stocks such as Daimler, Porsche and BMW ST, they all posted marginal gains of 1-1.5%. Meanwhile, Zalando is down about 4.3% after today’s latest positive slowdown.

DAX 40 Daily Chart – June 21, 2022

source: IG

Technically, we had a bearish closing candle (weekly candle) last week which closed below the major support level which is around the resistance at the 13270 area. The daily candle for Friday as we can see from the above chart closed as Inverted hammer and created a inside bar pattern. We have seen an upward movement since the inside bar pattern was identified.

The RSI has also entered the 30 level which is a possible sign of oversold territory. Price is hovering above 13300 with rejection from here opening more downside, potential retest and possible breakout of 13000 area. Breaking and closing of the candle above the blue horizontal line (13050-13070) may lead to more upside and possibly back above the 14000 handle.

Key levels that might be worth watching during the day:

the support Regions

resistance zones

FTSE 100: FTSE presses forward amid biggest UK rail strike in three decades

European stock markets advanced on Tuesday amid Britain’s biggest nationwide rail strike in 30 years.in London , FTSE 100 It rose 0.4% after the opening marginally higherafter strong gains in previous session. railway strike It comes amid an ongoing dispute over wages, jobs and conditions for rail workers. So far, there have been 18 months of negotiations between Network Rail and the RMT union. Tens of thousands of employees have withdrawn today, paving the way for large-scale industrial action across the economy in the coming months. The majority of lines on the London Underground have also been largely closed due to a separate strike.

The Center for Economics and Business Research warned that the three strikes occurring on Thursday and Saturday will have repercussions of at least £91 million on the UK economy.Richard Berg, chief executive of the London Chamber of Commerce and Industry, said: “While this strike would be harmful, a recession looks likely regardless; as such, I will notThe ultimate stagnation would be attached to this strike.

A relatively quiet day for the UK on the calendar, however, we’ve heard interesting comments from Bank of England (BOE) Member Katherine Mann. Ms Mann said she believes a weaker pound makes the case for higher interest rates, as a weaker pound will only increase inflation.

The FTSE’s gains this morning were mostly attributed to the energy sector, closely followed by materials that posted gains of 1.95% and 1.76%, while all sectors were positive except for utilities which fell 1% in the session.

Among the factors influencing the FTSE 100 Melrose PLC was closely followed by Avast and Glencore with gains of 3.7%, 2.2% and 1.9%, respectively.

FTSE 100 Daily Charts – Jun 21, 2022

The DAX, DOW and FTSE indices rose on Tuesday's positive risk tone

source: IG

The FTSE index continued to move higher this morning after yesterday’s positive close. On the daily chart, we have formed a bullish hammer candle, which coincided on the daily time frame with the RSI indicating the possibility of oversold conditions. We are currently testing the former support which is now resistance around 7150 with the refusal to leave the price set to retest the 6840 support area. A break above the 7150 resistance area may retest the trend line around the 7350-7400 area.

Key levels that might be worth watching during the day:

the support Regions

resistance zones

Dow Jones: US stocks are gaining a little while we wait for testimony from Fed Chairman Powell

US stocksIt gained in pre-market trading on the back of the Monday Juneteenth holiday in the US. Tuesday’s trading session comes after a volatile week that saw major central banks signal more aggressive efforts to curb high inflation.

US Treasury yields It rose on Tuesday as investors awaited the release of a fresh batch of economic data on the first trading day of the week.The yield on the standard 10-year Treasuries rose by about 3 basis points at 3.267%, while the yield on the 30-year Treasury rose by about 4 basis points to 3.333%. Yields move inversely to prices.

This week has provided mixed signals so far as US President Joe Biden’s comments that a recession in the US is not inevitable helped sentiment. Meanwhile, many on Wall Street are skeptical, as strategists at Morgan Stanley and Goldman Sachs Group Inc. That the stock may go down further. Meanwhile, Elon Musk, the world’s richest man, CEO of Tesla, spoke at the Qatar Economic Forum where he expressed his belief that a recession is inevitable “at some point”.

On the calendar front, we had the Chicago Fed’s National Activity Index for May which came in better than expected, coming in at 0.01. We also have existing home sales and Member of the Federal Reserve Tom Barkin speaking later in the day. Fed Chairman Jerome Powell begins his two-day testimonyBefore sInati BAnakin sAnnell on Wednesday and the House Financial Services Committee on Thursday.

The DOW rose in early European trade, gaining nearly 300 points to hit a session high at 30,411. Among the biggest drivers in pre-market trading, American Express Co and Boeing Co posted gains of 4.8% and 2.6%, respectively. .

The DAX, DOW and FTSE indices rose on Tuesday's positive risk tone

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DOW JONES Daily Chart – June 21, 2022

The DAX, DOW and FTSE indices rose on Tuesday's positive risk tone

source: IG

After other major stocks, the Dow broke through the 30500 support area last week before posting further declines towards us Myself 30,000 levels. On Friday, we closed a daily candle below the 30000 level with a low of 29576 before a moderate bounce.

Price is back above the psychological level of 30000 at the moment, with support at the 29500 area. The gray shaded box on the chart is our first resistance area around 30700 with a break above that likely to trigger a third touch of the downtrend line drawn from the April 21 highs .

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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