Welcome to Extreme Investor Network, where we provide unique insights and expert analysis on the stock market, trading, and Wall Street. Today, we are taking a closer look at the latest FX Empire report on US Retail Sales and its impact on the DAX index.
According to economists, initial jobless claims are expected to remain unchanged at 258k in the week ending October 12. A surprising increase in retail sales and a decrease in jobless claims could potentially alter the current expectations for multiple Fed rate cuts in the fourth quarter of 2024. This, in turn, could influence the direction of the DAX index, potentially pushing it towards 19,350 or 19,750.
Apart from economic indicators, investors should also pay attention to upcoming earnings results, as they can significantly impact market sentiment. In the near term, trends in the DAX will be influenced by Euro area inflation-related data, the ECB monetary policy decision, and corporate earnings. Any indications of softer inflation and ECB support for a rate cut could drive demand for DAX-listed stocks.
Currently, the futures are pointing towards a weak opening, with the DAX and the Nasdaq mini down by 10 and 55 points respectively. It is crucial for investors to remain vigilant, focusing on inflation, ECB decisions, corporate earnings, and the overall state of the US economy to effectively manage risks.
Looking at the technical indicators for the DAX, the index is trading comfortably above the 50-day and 200-day EMAs, signaling a bullish trend. A breakout above the October 15 all-time high of 19,634 could pave the way for a move towards 19,750 and potentially test the 20,000 level. Conversely, a drop below 19,350 could indicate a decline towards 19,000.
The 14-day RSI currently stands at 62.20, suggesting a potential move towards 19,750 before entering overbought territory. Investors should closely monitor economic data, corporate earnings releases, and the outcome of the ECB policy decision for cues on market direction.
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