The Dax closed weakly on Tuesday. Nervousness returned to the stock market ahead of the inflation data from the USA on Wednesday and the European Central Bank’s interest rate decision a day later. After all, the leading German index reached another record high a week ago and has remained fairly stable since then. The profit for the year so far has totaled almost nine percent.
The DAX ended the day with a discount of 1.32 percent to 18,076.69 points. It ended trading just above its daily low, which it reached later in the afternoon. The 21-day line, currently around 18,140 points, which signaled the short-term trend and had previously represented support, was broken. However, chart-oriented analysts still remain optimistic. “Only when the Dax falls below the high-volume price zone by 17,900 do the signs of a more pronounced phase of weakness increase,” said the experts from “Index-Radar”.
The MDax of medium-sized stock exchange stocks fell by 0.53 percent to 26,992.47 points on Tuesday. Losses were also predominantly recorded across Europe. At the same time, the US stock markets fell moderately.
According to “Index-Radar”, the next acid test for the Dax is coming up with US consumer prices for March. However, according to them, the expectations of the US Federal Reserve to cut interest rates have now been “appropriately reduced”. The ECB is also not expected to make any interest rate moves on Thursday. According to the experts at “Index-Radar”, in June it is likely to announce an interest rate cut of 0.25 percentage points. “But if the Americans don’t follow suit quickly, the European monetary authorities are likely to hold back on further easing.”
