Fed's interest rate increase fails to boost DAX, as the German stock index remains in negative territory
The German stock market index, DAX, has experienced a downturn this week, despite the Federal Reserve (Fed) lowering the key interest rate by 25 basis points on Wednesday evening. The hoped-for tailwind did not materialize, as the DAX closed at approximately 23,359 points on Wednesday, following a 1.8% drop the previous day.
The previous high for the US stock markets was at 23,795 points, a record that remains unbroken. In contrast, the DAX reached its peak on September 17th, at 23,476 points. However, the index has since shown signs of weakness, having broken out of its long-standing sideways movement and giving up an important support zone around 24,500 points.
The DAX is currently trading higher on Thursday, with the zone around 23,475/500 points back in focus. The first important support levels for the DAX are at 23,280 points, and below this, losses down to 23,000 points threaten. If the DAX rises sustainably above 23,600 points, the marks of 23,795 and 23,855 would come into focus. The first important resistance levels for the DAX are at 23,555 and 23,600 points.
Several factors are contributing to the DAX's current state. The political crisis in France, a tense trade conflict, the escalating Ukraine conflict, a strong euro, and profit-taking after the previous rally are all weighing down the index. Additionally, markets are still pricing in two further rate cuts this year by the Fed.
The bull-bear marker for the DAX is at 23.970 points, and the horizontal level of 23.910 points is significant for the DAX. The daily high for the DAX on September 1st was at 24.046 points, and the daily high for August 29th was at 24.063 points. It's worth noting that the gap on September 1st for the DAX was at 24.037 points.
The SMA100 (daily) for the DAX is at 22,866 points, providing a key reference point for technical analysts. The horizontal resistance levels for the DAX are currently at 23,475/500 points and 23,550 points.
Despite the current downturn, it's important to note that the search results do not provide specific information about which economic expert teams or institutions published their opinions on the DAX development on the mentioned days. This underscores the need for continued vigilance and careful analysis when interpreting market movements.
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