13/05/2023
๐๐๐ซ๐ฆ๐๐ง ๐๐ญ๐จ๐๐ค๐ฌ ๐๐จ๐จ๐ค ๐๐จ๐ซ ๐ ๐๐๐ญ๐ ๐๐ฎ๐ฌ๐ก ๐ญ๐จ ๐๐๐ฌ๐ข๐ฌ๐ญ๐๐ง๐๐
The GER 30 index found support late last week and will look for one last push to overhead resistance. The price of GER 30 trades at 15,945 with resistance at the 16,300-355 levels.
The recent price action hints that European stocks could make a final push to the highs of 2021, which would determine the next big trend. European indices started the trading week higher, with the U.K. markets closed for the King's coronation.
France's CAC 40 and the Italian FTSE MIB closed higher on Monday, while the German DAX ended the day's trading unchanged. Investors have been concerned over the last few weeks with stubborn inflation, higher interest rates, and the backdrop of banking turmoil.
Economists surveyed by the ECB have lowered their outlook for this year and next, while they see inflation at 2.2% in 2025 and 2.1% over the longer term. The ECB's projections have inflation at its 2% target in the second half of 2025.
With these projections priced into the market, the GER 30 index could make a move in the next week or two for the 2021 highs. Tomorrow will see a final inflation reading for the German economy for April, and 7.2% is expected. A lower number could propel European stocks higher. A slumping U.S. dollar has also helped the demand for European stocks.
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