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The DAX, FTSE and DOW indices struggle to recover after a tough week of losses -by Ecork

Dax, Ftse and Dow Jones Talking Points:

  • DAX 40: DAX rises even though Eurozone CPI meets estimates
  • FTSE 100 Index: Stability in European trade after a lackluster week
  • Dow Jones: US stocks positive in pre-market trade, as recession jitters continue

DAX 40: DAX rises even though Eurozone CPI meets estimates

European Stocks rose slightly after a difficult week to control it monetary policy tightening of major central banks.

As investors remain vigilant about the possibility of a major global economic slowdown, European indices remain under pressure, with the DAX down nearly 5% over the course of the week.

Despite the ambiguous geopolitical background, European Central Bank Board Member Class Note It was suggested several half point Prices may need to be raised If inflation worsens. Knot, an ECB hawk who was the first Governing Council member to float the idea of ​​a quarter-point hike above usual, said that even by moving in larger increments, he doesn’t expect to raise rates by 200 basis points sooner. early 2023.

The latest Eurozone consumer prices for May were released this morning, with monthly and yearly figures in line with expectations at 0.8% and 8.1%, respectively. In addition to the inflation dilemma, news that Russia may cut off gas supplies to Europe has caused further concern about the long-term effects of persistently high inflation.

With marginal gains this morning, the notable movers for the DAX were Delivery Hero AG, Zalando SE and Airbus Group SE with gains of 6.2%, 3.45% and 3.4%, respectively.

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Technically, we saw a bounce of support (13270 area) on Wednesday, followed by yesterday’s low that broke the support (13270 area). When we do this, we finally get access to a file Myself The 13000 level before it bounces this morning.

We have gained about 200 pips since the beginning of the day with the price on the verge of retesting the previous Support turns into resistance (Area 13270). With the price still under pressure, any rejection of this area could open a retest of the 13,000 level and possibly head lower.

Key levels that might be worth watching during the day:

the support Regions

resistance zones

DAX 40 Daily Chart – June 172022

The DAX, FTSE and DOW indices struggle to recover after a tough week of losses

source: TradingView

FTSE 100: Steady in European trade after a lackluster week

The FTSE 100 posted moderate gains in the European trading session after yesterday’s interest rate hike by 25 basis points from Bank of England (BOE). At the back of the announcement, we saw the FTSE fall 3.1% for the day after a positive trading day on Wednesday.

The FTSE is still under pressure, with experts warning that the UK could go through tough times ahead with inflation likely to reach 11% this fall. The economy is already somewhat stagnantNTThe cost of living crisis is exacerbated by a number of external shocks, including the Covid-19 pandemic and the war in Ukraine.

Although the Bank of England has been steadily raising interest rates, with Thursday’s rise the fifth in a row in seven months, inflationary pressures may escalate domestically as well. The concern for experts is sVolatility issues, lower real wages and Covid-19 concerns could slow the UK’s recovery further during the winter months.

Among the most notable movers for the FTSE 100 this morning included Glencore, whose stock rose 2.5% in early London trade. After she said she spent a lot of money on the fluctuations in Commodity Markets this year. Among the other performers, Ocado Group PLC and EasyJet posted gains of 4.5% and 4.2%, respectively.

FTSE 100 daily charts– June 172022

The DAX, FTSE and DOW indices struggle to recover after a tough week of losses

source: TradingView

The FTSE saw a rebound on Wednesday after clicking its support area (7120) before retesting trendline resistance around 7330 as seen in the chart. Yesterday saw a sharp decline from a retest of the trend line that broke the support area around 7120 and tested the psychological level of 7000.

With the 7120 handle continuing to rein in the bulls, increased selling pressure could give way to a retest of the 7000, setting the stage for further declines.

Key levels that may be worth watching during the day include:

the support Regions

resistance zones

Dow Jones: US stocks positive in pre-market trade, as recession jitters continue

US stocks It was in the pre-market trade Following a hard week for stocks. This comes after a 75 basis point rise from before US Federal Reserve Wednesday that raised fears of an economic recession in some quarters.

Federal Reserve officials are impatient with inflation rising. This means an increased focus on short-term indicators that were previously underestimated in favor of long-term indicators and a hard-line pivot in policy. President Jerome Powell’s reference to this action indicates that Fed officials are increasingly focusing not only on short-term fluctuations in actual inflation, but also on short-term measures of inflation expectations.

Chairman Jerome Powell said the Fed wasn’t out to push the economy into recession, but actually admitted that deflation was possible, though he argued it wouldn’t be the Fed’s fault.

Among the notable moves in pre-market trade were American Express, Boeing and Walt Disney which posted gains of 2%, 1.7% and 1.1%, respectively.

Dow Jones daily Chart – June 172022

The DAX, FTSE and DOW indices struggle to recover after a tough week of losses

source: TradingView

After the other major stocks, the Dow saw an uptrend on Wednesday before posting further losses yesterday. However, Wednesday’s candle close failed to break through the 30600 resistance area indicating the lack of momentum proven by yesterday’s 600 pips drop to hit a low of around 29,650.

A retest of the 30600 support area (now resistance) could see rejection, allowing the price to dip back below the 30000 psychological level and track further losses. Daily candlestick close again above 30600 could see an upward impulse heading towards next week.

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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