After the US indices, which had a mixed course throughout the week, the record rising momentum in the DAX index met with a slight disintegration movement. On the US side, the expectation that the Fed will not reduce its bond purchases in the near term after the report on non-farm payrolls limits the downward movement on the index side. On the European side, we see that the index has regressed to the level of 15,500, with the uncertainty that arose before the ECB's interest rate decision, which will take place today.
If we talk about the developments on the German side, while the industrial production in April contracted by 1.0 percent on a monthly basis, the annual data was 26.4, well above the previous month. In Germany, the June ZEW Index fell short of expectations with 79.8. After this development, the ZEW Institute stated that the economic recovery is working and the markets continue to expect a strong economic recovery in the next 6 months. On the other hand, Germany announced that it will extend its third epidemic support package until the end of September. After all these developments, we saw that the DAX index closed the day at 15,580 with a limited decline of 0.4 percent.
In the sectoral view of the index, while the health sector gained around 1% in value, it is seen that the downward potential in finance and discretionary consumption products has increased. Merck, which appreciated by 2.8 percent on a stock basis, stood out as the best performing stock by far. Among the worst performances of the day were Covestro, Deutsche Bank, Delivery Hero shares.
It can be expected that the DAX index will continue its record upward movement within the framework of 16.014 and 16.300 resistance levels, with a close above the 15.750 resistance. However, in a possible downside resolution of the index, we follow the 15.500 support as the first transition point. Due to the close below this level, the support levels of 15.100 and 14.750 remain current in the continuation of the declines.