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DAX 40 Market Update

10/27/2022 12:49 PM

The quotes of the DAX 40 stock index continue positive dynamics against the background of strong reporting of the main components, correcting at the moment in the area of 13170.0.

Thus, Germany's largest financial conglomerate Deutsche Bank reported revenue of 6.9B euros, which exceeded the 6.65B shown a quarter earlier, and earnings per share amounted to 0.53 euros against 0.33 euros earlier. Chemical concern BASF SE reported revenue of 21.9B euros, which is slightly lower than 22.97B euros a quarter earlier, but management is optimistic about the end of the year and maintained its forecasts. The automaker Mercedes-Benz Group AG also demonstrated positive results, increasing its net profit by 2.1 times and revenue by 19.0%. According to the company's management, the growth of indicators was provided by the increased demand for cars in the EU. 

The key event for the market will happen tomorrow, when the European Central Bank (ECB) will announce a decision on the interest rate. According to analysts' forecasts, the regulator will increase the value by 75.0 basis points in order to combat unprecedented inflation. At least, ECB officials, who announced an adjustment towards growth at the last meeting in September, hold a similar opinion. 

Among the growth leaders are Zalando SE (+6.59%), Fresenius SE & Co. (+3.97%), Siemens Energy AG (+3.73%), Symrise AG (+2.91%).

Among the companies showing downward dynamics are Beiersdorf AG (-1.47%), Henkel AG & Co. (-1.14%) and Vonovia SE (-1.03%).

On the daily chart of the asset, the price continues to trade within the global descending channel, approaching the resistance line.

Technical indicators have already reversed and issued a buy signal: fast EMAs on the alligator indicator crossed the signal line from the bottom up, and the histogram of the AO oscillator moved into the buy zone.       

Support levels: 12950.0, 12150.0. | Resistance levels: 13400.0, 14000.0.

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