Daily Analysis DAX40 - 4 Aug 2023
European stocks stabilized on Friday, recovering from a three-day decline, as a strong outlook from retail giant Amazon and other companies outweighed concerns over global economic growth. The Pan-European STOXX 600 index rose 0.1% by 0723 GMT, though it was still on track for its worst weekly performance in nearly a month.
On Wall Street, futures ticked higher due to Amazon's strong forecast, even as Apple's outlook remained pessimistic ahead of the US payrolls data.
In Europe, French lender Credit Agricole saw a 4.2% increase in its shares, fueled by positive quarterly earnings, driven by robust insurance and consumer finance results. Similarly, Italy's state-owned bank, Monte dei Paschi di Siena, surged 4.8% after reporting earnings that exceeded expectations for the second quarter.
On the downside, media shares were dragged down by WPP, the world's largest advertising group, which fell 7.5% after downgrading its full-year like-for-like growth forecast.
Additionally, Vonovia, Germany's largest real estate group, faced a 1.6% decline as it reported a €2 billion ($2.19 billion) second-quarter loss and wrote down the value of its properties by €3 billion.
DAX is rebounding from the 15800-support level and is now facing the next challenge at the 16000 short-term resistance level. The long bullish trend is evident, but it is currently forming reversal patterns as the price range in the last 3 months indicates weakness in the current trend.
Resi Level 3 |
Resi Level 2 |
Resi Level 1 |
Suppo level 1 |
Suppo level 2 |
Suppo level 3 |
16600 |
16400 |
16200 |
15650 |
15400 |
15200 |