Daily Analysis DAX40 - 12 July 2023

European shares saw modest gains on Wednesday ahead of the release of crucial U.S. inflation data, which will determine the future of the Federal Reserve's monetary policy tightening. The data, expected to show a moderation in the consumer price index (CPI) to 3.1% year-on-year in June, could impact the Fed's decision on rate hikes after July.

In other news, Norway's DNB bank reported better-than-expected quarterly earnings, benefiting from a strong economy and higher interest rates. Additionally, there was notable merger and acquisition activity as Thales initiated talks to acquire Cobham Aerospace Communications for $1.1 billion, a move deemed positive for Thales.  Meanwhile, AXA is reportedly considering selling its property reinsurance business to reduce disaster risk, with the unit valued at around $2 billion at the end of December, according to Reuters.

The DAX and other European markets are trading higher in anticipation of a potential slowdown in US inflation data. However, the current price action remains fragile and is contingent upon the data release. Selling pressures are still present, and a break above the 16400 level is needed to alleviate them.

Resi Level 3	Resi Level 2	Resi Level 1	Suppo level 1	Suppo level 2	Suppo level 3
16800	16600	16370	15650	15400	15200