The DAX returns to test major resistance while waiting for the ECB
The DAX 40 has been climbing back from the high ground since Thursday to return to test key resistance at 13,000 points this week. The German index benefited at the end of last week from the reassuring comments of several members of the Fed who dismissed the hypothesis of a rate hike of 100 basis points next week. Atlanta Fed President Raphael Bostic pleaded for the institution not to raise rates “too dramatically”, while Governors Christopher Waller and James Bullard said they favored a 75% hike. bps at the next meeting in ten days.
Risk appetite, however, dissipated yesterday as the DAX reversed gains late in the session after a historic drop in the NAHB US housing market index and a Bloomberg report suggesting that ‘Apple plans to slow hiring and spending for some divisions next year.
Risk appetite could weaken even more on Thursday, as the ECB could possibly raise its rates more significantly than expected. Although this is not the operators’ base case, there is a risk, as we have seen recently from other major central banks, that the ECB will raise rates more significantly, by 50 basis points. instead of 25 basis points. Such a move would put pressure on European indices.
4 hour chart of DAX 40 price – key levels