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Let’s dive into the exciting world of the stock market and see what Thursday’s market movers have in store for us.
Thursday Market Movers
On Thursday, the stock market saw some interesting movements. Sartorius AG led the gains, rallying 4.58%, followed by Siemens Energy AG with a 3.14% increase. Tech-related stocks like SAP and Infineon Technologies also ended the session on a positive note, driven by investor expectations of a September ECB rate cut.
However, auto stocks had a mixed day due to EU tariffs on electric vehicle imports from China. Porsche and Volkswagen saw gains of 1.06% and 0.81%, respectively, while BMW fell by 0.18%.
German and Eurozone Services PMIs and the ECB
Looking ahead to Friday, investors should pay attention to the preliminary private sector PMIs for Germany and the Eurozone. The Services PMIs, in particular, will be crucial as they influence buyer demand for DAX-listed stocks.
Economists are forecasting an increase in both the German and Eurozone Services PMIs, which could impact investor expectations of a Q3 2024 ECB rate cut. It’s essential to consider key sub-components like employment, new orders, and prices when interpreting these numbers.
Frederik Ducrozet, Head of Macroeconomic Research at Pictet Wealth Management, highlighted the importance of services CPI trends, indicating a potentially sticky inflation environment.
Can the US Services PMI Signal a September Fed Rate Cut?
Later on Friday, US private sector PMIs will also be in focus. The Services PMI will play a significant role in shaping the Fed rate path, as it accounts for over 70% of the US economy.
Economists are expecting a decline in the US Services PMI, which could impact investor bets on a September Fed rate cut. Sub-components like employment, new orders, and prices will provide additional insights into the economic environment.
Near-Term Outlook
Looking ahead, near-term trends for the DAX will be influenced by Services PMIs and central bank commentary. Stronger-than-expected Euro area PMIs could sway investor expectations regarding a September ECB rate cut.
On the Futures markets, the DAX saw a slight dip while the Nasdaq mini experienced a modest increase.
DAX Technical Indicators
As for technical indicators, the DAX remains below the 50-day EMA but above the 200-day EMA, signaling mixed signals for short-term and long-term price movements. Investors will need to monitor service sector PMIs and central bank commentary for further guidance.
Keep an eye on the 14-day RSI, which currently suggests a potential dip to the 17,750 handle before entering oversold territory. Remember, market movements can change quickly, so stay informed and make informed decisions to navigate the stock market effectively.
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