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DAX 40, German Stock Market is Preparing for Decline Again

12/13/2022 12:49 PM

The leading index of the Frankfurt Stock Exchange DAX 40 corrects upwards, trading at around 14587.0. The German stock market slowed down its growth after the end of the publication period of corporate reports, and the attention of investors again shifted to macroeconomic statistics.

Inflation data for November will be published today in the eurozone: according to preliminary forecasts, the Consumer Price Index may fall by 0.5% in monthly terms, which will slow down the growth of the annual rate to 10.0% from 10.4% earlier. However, inflation will remain high, which provokes the European Central Bank (ECB) to further raise interest rates and put pressure on the stock market due to rising borrowing costs.

In the domestic bond market, since the beginning of trading, the entire line of securities began to grow: popular 10-year German bonds added 1.14% and are traded with a yield of 1.956%, long-term 20-year bonds rose by 0.83% to 1.888%, and global 30-year bonds — by 0.76%.

The growth leaders in the index are Zalando SE (+5.09%), Sartorius AG (+2.65%), Beiersdorf AG (+1.42%), Qiagen NV (+1.13%).

Among the leaders of the decline are Fresenius SE (-2.44%), Deutsche Börse AG (-2.15%), BASF SE (-2.14%).

On the daily chart of the asset, the price is trading well above the descending channel resistance line, preparing for a local reversal.

Technical indicators are holding a buy signal, which is actively weakening: fast EMAs on the Alligator indicator are approaching the signal line, and the AO oscillator histogram, being in the buy zone, is forming new descending bars.

Support levels: 14100.0, 13400.0. | Resistance levels: 14600.0, 15200.0.

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