Daily Analysis DAX40 - 24 July 2023

Shares in Europe were poised to begin the week with a negative outlook on Monday following the inconclusive results of the Spanish elections. In addition, markets were preparing for central bank meetings, where another round of interest rate hikes was anticipated. Investors also had their attention on corporate earnings.

The outcome of Sunday's vote in Spain didn't provide a clear victory for either the left or right bloc, leaving the eurozone country facing the challenge of lengthy negotiations or the possibility of holding fresh elections to form a government.

Regarding earnings, Vodafone reported a 3.7% growth in quarterly service revenue, driven by a strong performance in Britain and an improvement in the rate of decline in Germany, Italy, and Spain. Dutch operator KPN also released its results, showing a 16% rise in second-quarter net profit. Ryanair was under scrutiny as the airline expressed caution about travel demand for the remainder of the year. Due to Boeing delivery delays, the company had to revise its passenger growth forecast despite achieving quarterly profit levels surpassing pre-pandemic figures.

On a more positive note, Philips raised its targets slightly after posting better-than-expected core earnings. The health technology company attributed this success to improved supply chains, a strong order book, and efficiency measures. 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 the 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