The DAX-40 Index is still trading above its major resistance level
European benchmarks traded in green territory from Stockholm to Madrid on Tuesday, despite a mixed opening caused by speculation over the next chair of the US Federal Reserve. While Jerome Powell is likely to be reappointed by President Biden for a second term, Lael Brainard was also being interviewed for the job. This inevitably raised questions about the future of US monetary policy as a less dovish stance would be expected under Brainard, impacting rates as well as the time schedule and pace of the tapering. Meanwhile, market sentiment continues to be driven higher as global restrictions ease even if inflation remains a concern as investors await key speeches from Christine Lagarde (ECB), Jerome Powell (Fed) and Governor Bailey (BoE) today.
The DAX-40 Index is still trading above its major resistance level at 16,000pts, consolidating before the likelihood of higher highs with a first target at 16,350pts on a mid-term basis.
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