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In the latest market update, we saw the Nasdaq Composite Index slide by 2.05%, the S&P 500 fall by 0.88%, and the Dow advance by 0.56% on Friday. Tech stocks like Infineon Technologies and SAP stumbled, while auto stocks such as Continental AG, BMW, Mercedes Benz Group, Porsche, and Volkswagen also felt the impact of market risk aversion.
Looking ahead, Eurozone Consumer Confidence figures for April will be in focus, with expectations of an improving economic outlook. ECB President Christine Lagarde’s commentary on the economic outlook, inflation, and monetary policy will also be important. Additionally, corporate earnings results, including those from SAP, are on the horizon.
In the US, investors will keep an eye on the Chicago Fed National Activity Index and earnings results from Verizon Communications Inc. The focus will shift to Service PMI and Core PCE Price Index numbers later in the week, impacting Fed rate cut bets.
For the DAX, near-term trends will be influenced by private sector PMIs, US inflation data, ECB chatter, and corporate earnings. A rise in bets on a June ECB rate cut could drive buyer demand for DAX-listed stocks, but corporate earnings will also play a significant role.
When it comes to technical indicators for the DAX, the daily chart shows the index sitting below the 50-day EMA but above the 200-day EMA, signaling bearish near-term but bullish longer-term price signals. Keep an eye out for a break above the 50-day EMA, which could bring the 18,000 handle into view. However, a drop below the 17,615 support level may signal a move towards the 17,500 handle.
Stay tuned to Extreme Investor Network for more updates and unique insights to help you navigate the ever-changing landscape of the stock market.
