Daily Analysis DAX40 - 16 Aug 2023

European stocks started the day on a downturn, primarily due to China-exposed mining companies experiencing losses following underwhelming economic data from Beijing. Additionally, UK stocks were under pressure due to a core inflation print that exceeded expectations.

The UK's prominent FTSE 100 index (UK100) experienced a 0.3% decrease after data revealed that British inflation slowed in July as anticipated, marking its lowest annual rate since February 2022. However, signs of pressure remained apparent in core and service prices.

The European mining sector (SXPP) saw a decline of 0.8% as traders evaluated the likelihood of a subdued economic recovery in China, a major consumer of metals.

China's new home prices fell for the first time this year in July, continuing a series of discouraging economic indicators.

Shares of Swiss eye-care company Alcon (ALC) rose by 1.5% after the company improved its full-year outlook for net sales and core diluted earnings per share.

Meanwhile, Admiral Group (ADM), a British insurer covering automobiles and homes, witnessed a 4.6% increase in its stock value following a slight uptick in first-half pre-tax profit.

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