DAX 30: Will Markit U.S. Services PMI Save The Trend?
- The DAX 30 (FXCM: GER30) remains bullish despite the last two days of losses. Friday’s low of 9320 is the trend-defining level.
- The soft German IFO Expectations Index and U.S. Consumer Confidence dragged the DAX 30 lower and it’s now up to the Markit U.S. Services PMI to boost stocks.
The DAX 30 (FXCM: GER30) remains bullish despite the last two days of losses as it trades above last Friday’s low and trend-defining level of 9320. On the index remaining bullish, it may reach this week’s high of 9590 and a break to this level could generate further gains, lifting the index to the February 1 high of 9797.
If Friday’s low of 9320 fails to hold as a support, the short-term trend may turn bearish and the DAX 30 might reach the February 17 low of 9138.
German IFO Expectations Index Disappoints
If Monday’s soft German Manufacturing PMI was not enough for traders to reduce their willingness to take on risk, yesterday morning’s soft German IFO expectations and U.S. Consumer Confidence index may have done it. The former slid to 98.8 from 101.6, while the latter dropped to 92.2 from 98. This triggered lower stock prices on both sides of the Atlantic.
Today, Markit U.S. Services PMI is expected to rise from 53.2 to 53.5 according to a Bloomberg News poll. The services sector has been relativity robust despite the soft manufacturing sector, and it may come to the rescue today if the outcome of today’s PMI report is higher than expected.
Traders will also be watching today’s DOE U.S. Crude Oil Inventories report at 15:30 GMT as the latest slide in crude oil may pressure stocks. A Bloomberg poll projects an inventory build of 3.25m barrels from 2.14m this past week.
DAX 30 | FXCM: GER30
Created with Marketscope/Trading Station II; prepared by Alejandro Zambrano
--- Written by Alejandro Zambrano, Market Analyst for DailyFX.com
Contact and follow Alejandro on Twitter: @AlexFX00
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