The DAX Index started higher today on improved sentiment amid headlines that China and USA are close to signing a deal on the amount of tariffs that will be rolled back in December. President Donald Trump earlier this week in London NATO summit said that the trade deal between the U.S. – China might have to wait until after the U.S. election on November 2020.
InvestingCube's S&R Levels
Waiting for a Breakout
Mixed European Data
The European Monetary Union Gross Domestic Product s.a. (quarter over a quarter) registered at 0.2% in line with expectations. The yearly reading came in at 1.2% matching forecasts. The European Monetary Union Employment Change (quarter over a quarter) came in at 0.1% for the third quarter of 2019.
The disappointment came from the European Monetary Union Retail Sales (YoY) which came in at 1.4% below consensus of 2.2% in October.
Investors returned to risky assets yesterday, after encouraging services PMI data from Europe. The Services PMI in Germany came in at 51.7 topping analysts consensus of 51.3 in November, the Composite PMI came in at 49.4 also beating expectations of 49.2 in November. German Manufacturing PMI registered at 44.10 topping market consensus of 43.8 for November.
The European Monetary Union Services PMI registered at 51.9 beating expectations of 51.5 in November, the Composite PMI came in at 50.6 also above expectations of 50.3.
Positive Close in Wall Street
Stock indices in Wall Street ended higher despite the disappointment from Non-Manufacturing PMI. Dow Jones index was ahead 0.53% at 27,649; the S&P 500 was up 0.63% at 3,112 and the Nasdaq ended 0.54% at 8,566.
Investors will focus on Employment Change q/q report, Retail Sales m/m, and GDP q/q from Eurozone. In the U.S. calendar, we have the Trade Balance, Initial Jobless Claims and monthly Factory Orders.
Dax 30 index is searching for direction after the recent correction and the rebound yesterday. The main factor driving DAX is the China-USA trade talks developments. As of writing DAX is giving up 0.27% at 13,106 keeping the bullish momentum intact despite the recent pullback.
Dax immediate support stands at 13,095 the daily low, while the next barrier to the downside is at the 50-day moving average at 12,847. A convincing break below that support zone will attract more bears to join the downward action that might push the price down to 100-day moving average at 12,444.
On the upside Dax, immediate resistance will be met at 13,154 the daily high, while a break above might question the 13,332 top from December 2nd before an attempt to the YTD highs at 13,375.
Asian stocks finished higher the trading session while the European markets trading mixed; In London, the FTSE 100 index is 0.11% lower at 7,180, CAC 40 in Paris is 0.44% higher at 5,824. In New York, the Dow Jones futures contracts, are 0.25 per cent higher at 27,712, the S&P 500 is 0.24 per cent higher at 3,119 while Nasdaq is 0.29% higher at 8,319.More content