Welcome to Extreme Investor Network, where we provide you with the latest insights and analysis on the Stock Market, trading, and all things Wall Street. Today, we focus on the tech sector and its response to risk aversion.
In recent trading sessions, we saw a decline in stocks like Infineon Technologies, SAP, and Siemens Energy AG. Infineon Technologies slid by 3.77%, while SAP fell by 1.80% and Siemens Energy AG declined by 0.39%. These movements were influenced by risk aversion in the market.
Looking ahead, Eurozone consumer inflation expectations and wage growth figures are on the radar for investors. Economists are forecasting a 2.8% year-on-year increase in wages for Q1 2024, down from 3.1% in Q4 2023. Additionally, Consumer Inflation Expectations are expected to fall from 3.0% to 2.8% in April. Softening wage growth figures and a decline in inflation expectations could impact investor sentiment towards a possible ECB rate cut in July.
Investors should also pay attention to ECB President Christine Lagarde and Chief Economist Philip Lane’s speeches, as well as ECB Executive Board member Luis de Guindos’ remarks. These insights will provide guidance on inflation, economic outlook, and interest rates, along with the potential impact of the French elections on the ECB rate path.
In the US, the NY Empire State Manufacturing Index numbers will be a focal point for investors. Recent economic indicators have fueled speculations of a September Fed rate cut, but any unexpected declines could raise concerns of a hard landing. FOMC member commentary on the economic outlook and inflation will also be crucial.
The near-term outlook for the DAX will be influenced by French election polls, EU-China tariff-related news, and central bank discussions. Market risk appetite will also be influenced by economic indicators from China before the European opening bell. Technical indicators for the DAX suggest potential movements towards the 50-day EMA or a decline towards the 200-day EMA.
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