Daily Analysis DAX40 - 17 July 2023

On Monday, European shares experienced a decline due to the slump in luxury group Richemont, which reported weaker-than-expected organic sales growth. Moreover, concerns arose about the demand from China, the world's second-largest economy, as its economic growth showed lackluster performance.

The personal and household goods index (.SXQP), which includes luxury companies, suffered the most significant sectoral losses, declining by 2.2%.

Adding to the negative sentiment, data indicated that China's economy expanded at a fragile rate in the second quarter, primarily due to weakened demand. This development increases the pressure on policymakers to implement additional stimulus measures.

The DAX faces a significant challenge of surpassing the 16,400 level. In the short term, the DAX remains bullish due to the prevailing risk-on sentiment in the markets, but Q2 earnings are awaited to confirm whether or not there will be more momentum.

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