Daily Analysis DAX40 - 11 Aug 2023

European shares opened lower on Friday following a Wall Street rally driven by mild inflation data that lost momentum. However, better-than-expected earnings pushed the benchmark STOXX 600 towards modest weekly gains.

Wall Street's main indexes ended almost unchanged on Thursday, having surged up to 1% during the session. This rally came in response to data indicating moderate growth in U.S. consumer prices for July, a factor that might influence the Federal Reserve's decision to maintain interest rates in the coming month. Nonetheless, both U.S. and European bond yields continued to rise, putting pressure on equities.

The UK's FTSE 100 (UK100) dropped by 0.6% as the pound gained ground. This movement followed official data revealing unexpected growth in Britain's economy for the second quarter.

In terms of individual stocks, UBS, Switzerland's largest bank (UBSG), saw a 4.2% increase. This rise came after the bank announced it no longer required the public liquidity backstop, which was established as part of its state-sponsored acquisition of Credit Suisse.

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