German 30 (DAX) Index Steady at €17,710 Amid Upbeat German PMI Data

The DAX index, Germany’s leading stock market indicator, has maintained its upward rally but rather steady at around €17,710 and remained well bid on the back of upbeat German and Eurozone Services PMI. Despite fluctuations in global markets, the DAX managed to maintain its upward trend.

German30 Price ChartHowever, the reason behind the DAX’s upward momentum was the upbeat finalized Services PMI data for Germany and the Eurozone. Both regions saw upward revisions to their preliminary PMIs, indicating a potential shift in momentum towards economic recovery.

Despite difficulties in the tech sector, major German companies such as Bayer, Siemens, and Mercedes-Benz Group have performed well, helping the DAX stock index remain stable.

While some industries faced setbacks, others like automotive showed mixed outcomes, including gains for certain companies. Overall, this varied performance has played a role in steadying the DAX amid ups and downs in the overall market.

On the Euro front, the European Central Bank’s decisions about interest rates and recent economic updates from Germany have greatly influenced the DAX index. Investors paid close attention to the finalized Services PMI data, which hinted at possible shifts in the ECB’s policies.

However, the PMI figures were revised upwards, alongside ongoing pressures from wage growth, sparking speculation about a potential interest rate cut by the ECB in June. This suggests that changes in the ECB’s policies could impact the DAX’s performance in the future.

On the data front, the German Services PMI rose to 48.3, surpassing the initial estimate of 48.2. Similarly, the Eurozone Services PMI climbed to 50.2, up from the preliminary figure of 50.0. These positive indicators have bolstered investor sentiment, fueling optimism about the economic outlook.

On the US front, the bearish trend of the broad-based US Dollar, driven by disappointing macro data and dovish Fed comments, could indirectly impact the DAX index. Meanwhile, the weaker US economic indicators and slower growth in the services sector raise concerns about global economic recovery, affecting investor sentiment in the German market.

Moreover, the decline in US factory orders signals weakened demand for manufactured goods, which could further dampen optimism about global trade and economic prospects. Furthermore, any cautious stance from the Federal Reserve regarding interest rate cuts also contributes to uncertainty, influencing the performance of the DAX index amidst broader market fluctuations.

In the latest session, the DAX index displayed a modest uptick, trading near the pivot point of €17,711.71. This benchmark level acts as a fulcrum for potential price swings.

Above this pivot, we observe resistance tiers at €17,955.54, €17,881.70, and €17,799.00, each a barrier to bullish advances.

Should the index falter, support emerges at €17,645.41 and further down at €17,487.19. With the 50-day EMA at €17,433.87, providing a dynamic baseline, investors watch these levels closely.

The RSI at 69.34 nears overbought conditions, suggesting the market may need to digest recent gains before embarking on its next decisive move.