Daily Analysis DAX40 - 6 July 2023

European shares slumped nearly 1% on Thursday due to heightened concerns about a global economic slowdown and the possibility of future interest rate hikes. Additionally, the escalating trade battle between China and the United States added to the negative sentiment. The recently released Fed minutes from Wednesday revealed that the central bank remained unified in keeping rates unchanged during the June meeting, allowing time to assess the need for further rate hikes, despite the majority expecting future policy tightening. Investors are closely watching U.S. Treasury Secretary Janet Yellen's upcoming visit to China, as she is expected to address the recalibration of relations between the world's two largest economies, following Beijing's imposition of export restrictions on certain metals, which caused tensions to rise. In other news, German industrial orders in May exceeded expectations, primarily driven by large-scale orders for ships, spacecraft, and military vehicles.

The DAX continued its correction as economic and geopolitical tensions continue to dampen risk appetite. The Eurozone Services PMI indicated a slowdown in activity, while the European Central Bank's tightening cycle remains ongoing. The next support level is expected to be around the 15700 area.

Resi Level 3	Resi Level 2	Resi Level 1	Suppo level 1	Suppo level 2	Suppo level 3
16800	16600	16370	15650	15400	15100