Welcome to Extreme Investor Network: Your Source for In-Depth Stock Market Analysis
As experts in the field of the Stock Market and trading, we are here to provide you with unique insights and valuable information to help you navigate the complex world of Wall Street. Today, we dive into the latest trends and developments impacting the stock market.
The US Services Sector and the Perfect Combo of Higher Orders and Lower Prices
In recent news, the US S&P Global Services PMI showed a positive trend, reaching a 26-month high in June. This increase was accompanied by a softening of input price inflation, signaling a beneficial combination of rising new orders, higher employment, and lower input costs.
Despite this positive news, the US equity markets closed with mixed results at the end of the week. Factors such as profit-taking and uncertainty in the EU Project affected market sentiment. Investors are closely watching German business sentiment figures for June to gain clarity amidst market volatility.
German Ifo Business Climate Expectations Unlikely to Shine
The upcoming German Ifo Business Climate Index report will be closely monitored by investors. Economists predict a slight increase in the Index for June, but the overall sentiment remains subdued. Sub-90 levels indicate a gloomy outlook, with ongoing concerns over the EU Project and French election outcomes contributing to market uncertainty.
Is the EU on the Brink of an All-Out Trade War with China?
Tensions between the EU and China are escalating, with a recent visit by German Economy Minister Robert Habeck to Beijing adding fuel to the fire. Reports of a potential trade war between the two economic powers could have a significant impact on the German and Euro area economies. Investors are advised to monitor developments closely for potential market implications.
US Dallas Fed Manufacturing in Focus
Looking ahead, the US Manufacturing sector will be in focus as the Dallas Fed Manufacturing Index is expected to show improvement in June. Better-than-expected numbers could support investor expectations of a soft landing, but the overall impact on the Fed rate path is limited due to manufacturing’s smaller share of the US economy.
Near-Term Outlook
The near-term outlook for the DAX will be influenced by factors such as the French elections, central bank commentary, and key economic reports. Threats of EU exits and unexpected US economic data could drive market movements. Investors are advised to stay informed and prepared for potential shifts in the market.
DAX Technical Indicators
Technical analysis of the DAX shows a bearish near-term but bullish longer-term price signals. Key levels to watch include a breakout above the 50-day EMA, which could signal a rally towards 18,500. Conversely, a drop below 18,000 could lead to a test of the 17,615 support level. The 14-day RSI indicates potential oversold conditions around the 17,750 handle.
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