Daily Analysis DAX40 - 7 Sep 2023

European stocks experienced their seventh consecutive decline on Thursday, marking their lengthiest losing streak in over five years. This decline was attributed to two primary factors: concerns about a decelerating European economy and rising US interest rates.

Technology shares, particularly sensitive to interest rates, witnessed a nearly 1% drop as US Treasury yields surged following robust services sector data on Wednesday. This development raised worries that persistent inflation could result in prolonged higher interest rates.

In the coming weeks, market watchers will closely monitor monetary policy decisions from both the European Central Bank and the US Federal Reserve.

Adding to concerns about Europe's economic momentum, data revealed that German industrial production in July fell slightly more than anticipated.

However, there was a bright spot as shares of Direct Line Insurance Group (DLG) soared by 14.1%. The British motor and home insurer expressed optimism by forecasting improved operating profit for 2024.

DAX received support and experienced a rebound at the 15,500 level. The current price range encompasses support at 15,500 and resistance at 16,400. In the short term, the forecast suggests that if DAX surpasses the 16,000 mark, there's a possibility of it advancing towards 16,500, even after retracing to the 15,500 level.

Resi Level 3	Resi Level 2	Resi Level 1	Suppo level 1	Suppo level 2	Suppo level 3
16600	16400	16200	15650	15400	15200