Welcome Extreme Investors!
Let’s dive into the latest market movers from Tuesday’s trading session.
Auto stocks took a hit as Mercedes Benz Group and Volkswagen saw declines of 5.15% and 4.54% respectively due to falling profits impacting demand for auto stocks.
Other auto giants like Daimler Truck Holdings, BMW, and Porsche also ended the session down, with declines ranging from 2.70% to 4.36%.
On the flip side, Adidas fell by 2.54% despite beating earnings expectations, while Vonovia rallied 3.94% after reporting a return to profit.
Focus on German and Eurozone Manufacturing
Keep an eye on the finalized Manufacturing PMI numbers for Germany and the Eurozone on Thursday. German Manufacturing PMI increased slightly, while Eurozone Manufacturing PMI declined.
Additionally, the FOMC press conference with Fed Chair Powell’s comments on inflation and interest rates may impact market movements, especially on the DAX.
US Labor Market Data Ahead
Later in the Thursday session, US labor market data such as nonfarm productivity, unit labor costs, and initial jobless claims will be in focus. Expectations are for some positive growth in these areas.
Trade data and factory orders will also be released but may take a back seat to the labor market data as the market shifts focus to the upcoming US Jobs Report.
Near-Term Outlook and Technical Indicators
As we look ahead, investors should consider the potential impact of ECB rate cuts, corporate earnings, and the US labor market data on the market trends.
Keep an eye on the DAX’s technical indicators, with the 50-day EMA serving as a key support level. A breakout above 18,000 could signal further upside potential, while a drop below the 50-day EMA may lead to a decline towards the 17,615 support level.
Stay tuned for more updates and analysis on market movements and trends. Happy investing, Extreme Investors!
