Recovery with a Question Mark: DAX Fights Back Ahead of US Labor Data
Tuesday was a friendly day for the DAX, bringing the leading index a gain of 0.5 percent, which brought it closer to the 24,000-point mark. It closed the trading day at 23,710.86 points. Market participants can breathe a slight sigh of relief, but the crucial question remains: Will the volatile ups and downs of recent weeks persist, or can a sustainable direction finally take hold? The DAX is likely to closely track movements in the US market today. Following yesterday's release of the Eurozone consumer prices (inflation expected to grow by 0.1 percent to 2.2 percent), today's agenda includes both the US Services PMI and the important ADP labor market data. Larger deviations from the forecasts could trigger significant volatility spikes that would also influence the DAX.
Bayer Cheers Amid US Lawsuit Relief: 12 Percent Price Jump
Among individual stocks, Bayer delivered the biggest surprise on Tuesday: fueled by a legal easing in the Glyphosate lawsuit in the US, the stock shot up by an impressive 12.1 percent. The assessment by the US environmental agency that there are no health risks when the product is used correctly caused celebration on the exchange. Bayer stock thus marked a new annual high and has gained 25.8 percent over the last three months. Furthermore, Hugo Boss's strategy update is in focus today at 7:30 AM CET, with an analyst conference at 10 AM.
DAX Before New Test: Must the 100-Day Average Fall?
Technically, the DAX is still stuck below the 100-day moving average. With yesterday's recovery and positive news, a renewed test of this resistance could be on the agenda. The resistance is simultaneously located at Monday's high of 23,876 points; this level must be surpassed. On the downside, the price at 23,445 points can serve as support. The crucial data from the US this afternoon will determine the direction for the rest of the trading day.
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