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DAX 40 Market Update

10/19/2022 12:46 PM

The leading index of the Frankfurt Stock Exchange DAX 40 corrects upwards, trading at around 12848.0.

The upward dynamics is fixed against the background of the publication of corporate reports and strong macroeconomic statistics. The index of Economic Expectations in Germany from the Center for European Economic Research (ZEW) corrected to -59.2 points from -61.9 points earlier, and this was the first increase in the index since June. In turn, shares of automakers are actively adding in value after the release of a report on car sales in the EU, which showed growth in September by 9.6% compared to last year. This may be a signal for the start of the recovery of the auto industry after 13 months of stagnation.

The bond market, which is now correcting downwards, weakened its pressure on the index as well. The yield on 10-year German government bonds in today's trading is 2.2805%, which is lower than last week's high of 2.3651%, while long-term 20-year bonds lost 0.18%, trading at a rate of 2.472%.

The growth leaders in the index are HeidelbergCement AG (+3.82%), Mercedes Benz Group AG (+3.42%), Sartorius AG (+2.98%), Deutsche Bank AG (+2.58%).

Among the leaders of the decline are Bayer AG (-0.97%), Vonovia SE (-0.80%), RWE AG (-0.36%).

On the daily chart of the asset, the price is trading within the global descending channel, rising towards the resistance line. Technical indicators are about to reverse and give a buy signal: fast EMAs on the Alligator indicator are approaching the signal line, and the AO oscillator histogram has reached the transition level, preparing to move into the buying zone.

Support levels: 12580.0, 11930.0. | Resistance levels: 13100.0, 13560.0.

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