Welcome to Extreme Investor Network, where we provide unique insights and analysis on the stock market, trading, and everything related to financial markets. Today, we are looking at the latest developments in the US economy and how they could impact DAX-listed stocks on Wall Street.
Investor bets on multiple 2024 Fed rate cuts are on the rise, which could potentially boost demand for DAX-listed stocks. However, a significant decline in US retail sales could reignite fears of a hard landing for the US economy. Since private consumption contributes over 60% to the US economy, any weakness in retail sales could have a significant impact on market risk sentiment.
Bloomberg TV Asia Pacific Chief Markets Editor David Ingles recently noted that the US economy seems to be cooling faster than expected, with the Bloomberg US Economic Surprise Index hitting a 9-year low. This could raise concerns about a potential recession in the US economy.
Looking ahead, the near-term outlook for the DAX will be influenced by key events such as US retail sales data, Euro area inflation numbers, and the ECB press conference. Weaker data could signal a more dovish approach to interest rates, potentially pushing the DAX towards the 19,000 mark.
On the technical side, the DAX has remained above the 50-day and 200-day EMAs, indicating bullish price signals. A breakout above the Monday high of 18,744 could pave the way for a move to the May high of 18,893. However, a break below the 18,500 handle could bring the 50-day EMA into play.
As investors navigate through market uncertainties and growing concerns about China, it’s crucial to stay informed and proactive. Keep a close eye on news updates, economic data releases, and expert commentary to fine-tune your trading strategies. At Extreme Investor Network, we provide the latest news and analysis to help you manage risk and make informed investment decisions.
Stay tuned for more updates on the DAX and other market trends. Happy trading!