Global stocks were relatively positive on Thursday as the market reflected on the relatively positive economic data from the United States. In Europe, the FTSE 100 index rose by 0.15% while in Germany and France, the DAX and CAC 40 indices rose by more than 0.50%. In the US, futures tied to the Dow Jones, Nasdaq 100, and S&P 500 indices rose by more than 0.30%. American futures will see little action today since the country is celebrating Thanksgiving. Data published on Wednesday showed that the US labour market was tightening while a key inflation gauge rose to the highest level since the early 90s. Olaf Scholz will become the country’s first new chancellor in more than 16 years. In a statement, he pledged to launch major investments in the country.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

 The currency also wavered after the relatively weak German GDP data. The numbers showed that the economy expanded by 1.7% in the third quarter. This was a lower number than the median estimate of 1.8%.

The DAX is bearish. The market is trying very hard to break the support around 15050. M L3 is support and the target if 15050 is taken out. Equities are correlated to Yen and commodities. When commodities prices go down, Stock Markets go down and there is no demand for positive swaps on AUD pairs currently as opposed to JPY.  When its a risk-off environment, usually the opposite occurs, and as a result, the JPY appreciates as foreign flows from Japan are repatriated back to their local currency. We can see that in the DAX which also correlates to EUR and JPY simultaneously. The final target is 14435 if the drop below 15050 happens.

Sentiments on DAX are Still Bearish

Dec 06 2021

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