Daily Analysis DAX40 - 14 Aug 2023

European stocks made marginal gains in early trading on Monday, with defensive sectors such as healthcare and telecoms leading the advance. However, concerns over China's troubled property sector led to declines in mining stocks, tempering the overall gains.

Healthcare stocks saw a 0.2% increase, driven by a 5.4% surge in Philips, which topped the STOXX 600 after Dutch investment firm Exor NV acquired a 15% stake in the company. Exor, in turn, experienced a marginal decline of 0.4%.

The telecoms sector index rose by 0.6%, supported by a 1.5% gain in Deutsche Telekom.

Despite these positive movements, the prevailing sentiment remained largely risk-averse. The European basic resources sector saw a 0.3% dip, while oil and gas stocks slipped by 0.5% due to lower prices of crude oil and base metals. These declines were influenced by heightened worries about China's property sector and a stronger US dollar.

China's top private property developer, Country Garden, announced a suspension of trading in its 11 onshore bonds, further contributing to the cautious atmosphere. Luxury giant LVMH, which has significant exposure to China, also experienced a slight 0.1% decline.

Eurozone bond yields experienced a slight increase, with Germany's benchmark 10-year government bond yield reaching a one-month high.

Indices in commodity-heavy European markets lagged, with the UK's FTSE 100 and Norway's Oslo SE All-Share Index each falling by 0.1%.

Additionally, geopolitical tensions were in focus following a Russian warship's firing of warning shots at a cargo ship in the Black Sea over the weekend.

This week, a range of economic data is scheduled for release, including a flash estimate of euro-zone second-quarter GDP data, updated Eurozone inflation figures, and British consumer price data.

Wall Street futures remained mostly unchanged after Friday's losses prompted by hotter-than-expected US economic data.

Another notable gainer in Europe was Siemens AG, which rose by 0.8% after Berenberg upgraded the German engineering and technology group from "hold" to "buy". 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