DAX Index Nears 20,000 Amid ECB Rate Path Speculation and Decreasing Inflation

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Friday was an eventful day in the market, with several key players making significant moves. Siemens Energy AG saw a 4.07% rally after announcing an improved outlook for 2024, while Siemens AG gained 2.35%. Zalando SE also had a strong day, climbing 3.32% after receiving an upgrade from Berenberg. On the other hand, the auto sector experienced a mixed session, with Porsche, Volkswagen, Mercedes Benz Group, and BMW all seeing slight declines.

Looking ahead to Monday, investors are keeping a close eye on ECB commentary and economic data from China. ECB Executive Board members Piero Cipollone and Claudia Buch are scheduled to speak, potentially providing insight into future interest rate cuts. In China, consumer prices showed signs of improvement, but concerns remain about producer prices.

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US Economic Calendar: Monitor Consumer Inflation Expectations and Fed Updates

In the US, Monday’s economic calendar includes Consumer Inflation Expectations and speeches from FOMC members Loretta Mester and Philip Jefferson. Higher-than-expected consumer inflation numbers could impact speculation about a Fed rate hike. Meanwhile, FOMC member commentary will be closely watched for insights into inflation and monetary policy.

Near-Term Outlook and Technical Indicators for the DAX

The near-term outlook for the DAX will be influenced by ECB guidance, US inflation data, and FOMC member updates. The index is currently above key EMAs, indicating a bullish trend. A break above the recent high could push the DAX towards 19,000, while a drop below key support levels could signal a potential retreat.

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