Home Forex Markets Analysis of the trend of Germany’s DAX40 index: US stocks boosted the performance of European stocks, and the bottom of 12500 was consolidated

Analysis of the trend of Germany’s DAX40 index: US stocks boosted the performance of European stocks, and the bottom of 12500 was consolidated

by WOOWinvest
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Analysis of the trend of Germany’s DAX40 index: US stocks boosted the performance of European stocks, and the bottom of 12500 was consolidated


Supported by the positive earnings season of US stocks and the expectation of the Federal Reserve to slow down interest rate hikes, the rebound of US stocks has greatly boosted the performance of European stocks.

U.S. stocks led the performance of European stock indexes such as Germany’s DAX40.

The performance of the second-quarter financial report was better than market expectations, which helped the US stock market to establish a staged bottom. More and more buying orders returned, which contributed to the strong rebound of the US stock market and significantly promoted the rebound of the European stock market.

Expectations of the Fed to slow rate hikes also played a decisive role. Affected by the continued fall in oil prices, the market continues to pay attention to the peak of US inflation, and the just-released US CPI data for July is lower than market expectations, strengthening the possibility that the Fed will only raise interest rates by 50 basis points in September, which is undoubtedly good for the stock market. information. Superimposed on the strong U.S. economic data, concerns about the U.S. falling into a recession have weakened, and U.S. stocks are one step closer to establishing the bottom of the trend.

Germany’s DAX40 index rebounded in a good atmosphere.

After the low of 12,500 in March, the index continued to rebound upwards. As the bulls recovered the 13,000 mark, the decline was greatly eased. After breaking through 13,400, it marked that the upward trend of the German index was strengthened, or it looked towards the 13,800-14,000 area.

In terms of strategy, take 13400 as the boundary, hold steady above this line and look at 13800-14000, break through 14000 and further point to 14500-14800, focusing on buying; falling back below 13400 means the rebound is over, and then breaking below 13000 will face heavy losses The risk of falling back is mainly short selling.

(by Arthur)

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