Daily Analysis DAX40 - 21 July 2023

On Friday, European shares experienced a relatively subdued performance. The market saw a decline in technology stocks, primarily due to software maker SAP's disappointing forecast, which had a negative impact on investor sentiment. SAP's announcement of trimming its full-year outlook for key cloud sales led to a significant drop of 4.8% in the company's stock.

Conversely, there were some gains in the energy sector as energy companies benefited from the rise in oil prices. This led to a 0.7% increase in energy firms' stock prices. Investors were closely evaluating the possibility of additional stimulus measures from China, which played a role in influencing energy stocks.

The technology sector in Europe, represented by the (.SX8P) index, had a tough week overall, being the most significant decliner among major sectors. By the end of the week, it experienced a further decline of 1.6%.

Despite new support measures implemented by the Chinese government to bolster their economy, it failed to have the desired effect on lifting overall market sentiment, contributing to the muted performance in European shares.

The DAX came back toward the 16,200 level. In the short term, the DAX remains bullish due to the prevailing risk-on sentiment in the markets, Q2 earnings started positive and better than expected which may help DAX reach the last high at 16400.

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