DAX MAINTAINS POSITIVE DIVERGENCE
In the FOMC meeting, which was the most important agenda of the week, global risk appetite was not affected negatively by not taking any action contrary to market expectations. In addition, the uncertainty as to when and where the first stage agreement between the US and China will be signed after the canceled APEC meeting in Chile continues. Moreover, the US indices closed the day in the light-selling region as Chinese officials announced that they did not foresee a long-term agreement with the US, weakening the risk appetite in the markets. The DAX index, on the other hand, has seen the rallies for the 13,000 level with a 0.7 percent increase. If we look at companies that are traded under DAX, BAYER and E.ON shares triggered the increases in the index. However, it can be said that the depreciation of Infineon Technologies and Deutsche Bank stocks suppressed the increases on the DAX side.
If we look at the general course of the macroeconomic data announced in Germany, the retail sales data increased by 0.1 percent, which was below expectations and led to an increase in uneasiness about the German economy. In addition, inflation in Germany fell by 1.1 percent in October to its lowest level since February 2018, compared to the same period last year. The uncertain trade agreement between the US and China, the slowdown in global economies and growing concerns about Brexit continue to affect German exports negatively. Thus, we see that growth expectations for the German economy have been revised downwards.
On the UK side, the Brexit agreement, which was postponed for 3 months, weakened the uneasiness of Brexit in the markets and increased early election turmoil in the country. While this situation has some effect on the indices, the statements made by British Prime Minister Boris Johnson that they will realize Brexit in case of winning the election increase the positive perception.
If we take a look at the technical outlook of the DAX index, it can be expected that the index, which is among the upward attacks for the 13,000 level, will accelerate the purchasing potential as it exceeds this level. Thus, we can see that the index has moved above the 13.100 level which is an important transition point. However, it remains the main support point of 12,800 depending on the situation of a long withdrawal.