Dax index trading lower for the second straight day, ignoring the positive momentum in Wall Street. Dow Jones ended higher while the S&P 500 hit another record. However, Nasdaq was under pressure as investors book some profits off the table.
In economic data from Germany, the GfK’s consumer confidence slipped to -1.8 for September from a -0.2 in August. Analysts are expecting a reading of 1.2, but some local coronavirus restrictions weighed on consumers. The Germany Import Price Index registered in at 0.3%, topping the expectations of 0.2% in July. The yearly reading for Import Price Index came in at -4.6% also above the forecasts of -4.7%.
Jerome Powell in his speech in Jackson Hole Symposium yesterday announced the shift in the policy framework. In the new policy framework, inflation could rise above the 2% target as the Fed will focus on boosting economic growth. The move points to lower interest rates for a longer time.
Deutsche Bank is the top performer in the Dax index, adding 1.88% at 8.44 getting a hand from the Fed’s new policy framework. The technology sector is under pressure as investors are taking some profits off the table. SAP is 0.56% lower at 139.58, and Beiersdorf AG is 0.70% lower at 96.64.
Dax index is 0.24% lower at 13,063 but off the daily lows as the index after a dip below 13,000 in the opening managed to return above the critical mark as I have mentioned in my previous analysis: Bullish Momentum Above 13,000 For DAX Index.
Support for the Dax index would be met at 12,951 – 13,000 area. If sellers break that area, then the next level to watch is 12,727 the 50-day moving average.
On the other side, intraday resistance stands at 13,147 the daily high. Bulls would face more selling pressure 13,223 the top from yesterday’s trading session. The top from July 21 at 13,304 is the next supply zone in our daily chart.
