Turning Point for DAX

Turning Point for DAX

Turning Point for DAX

Inflation concerns, triggered by the rising oil prices in the new week, caused the indexes to turn down. Especially after the non-farm employment report announced by the USA did not meet the expectations, the risk appetite in the markets weakened considerably. On the other hand, we saw that the serious contraction in factory orders and industrial production data regarding the German economy caused the index to accelerate its sales. In addition, after the August export figure in Germany contracted by 1.2 percent, the increase in imports reached 3.5 percent. Added to the weak outlook of these data was the German ZEW index's figure of 22.3, which was below expectations. Thus, the DAX index accelerated its attacks towards the critical support threshold of 15.038 on the day. While the ZEW Institute pointed out that the economic situation in Germany deteriorated, it drew attention to the decline in export-oriented sectors. The institute also stated that it expects the inflation rate to rise further in the next six months.

Continuing to threaten the economies with the high inflation image of the effects of the Kovid-19 epidemic around the world brings weakness on the index side. In this context, we see that the risk appetite is suppressed on the side of the DAX index. In addition, it is seen that the inflation data announced on the German side this morning came in line with the expectations with 4.1 percent.

After all these developments, if the DAX index remains above the 15.185 level, the rises can be expected to gain momentum within the framework of the 15.333 and 15.500 resistance levels. However, in a possible downside dissolution, closes below 15.185 seem likely to accelerate the declines with 15.038 and 14.870, support.

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