DAX, DOW and FTSE mixed as global growth signals slowdown

  • DAX 40:Lower on the back of gloomy euro area data.
  • FTSE 100:Flat as inflation increases UK debt costs.
  • DOW JONES:Flat while markets consider fears of recession.

DAX 40: Marginal lower on the back of dismal Euro-Area Data

That Dax struggled in European trade this morning and fell as dismal euro area data gave rise to recession fears. While a Reuters poll published earlier Thursday, one in three predicted a chance of a recession in the bloc within 12 months. We had a number of European PMI data out this morning from France, Germany and the euro area. High euro area prices meant that demand for processed goods fell in June at the fastest rate since May 2020, when the covid pandemic took hold. S&P Global headline factory Purchasing Manager’s Index (PMI) fell to a nearly two-year low of 52.0 from 54.6. The PMI for German manufacturing also suffered a blow to Europe’s most industrialized economy, which fell from 54.0 to 52.0, which will undoubtedly have a negative impact on the components of the DAX 40.

The sector breakdown is as such mixed, while individual movers are affectedd by numerous broker movements. The only notable mover was Deutsche Bank AG, which fell 4.80% for the session as we approach the US market openingn.

DAX 40 Daily Chart – June 23, 2022

DAX, DOW and FTSE mixed as global growth signals slowdown

Source: IG

From a technical perspective, we had a bearish candlestick close (weekly candle) last week, which closed under the key support to reversed resistance at the 13270 area. Yesterday’s daily end formed one three-legged candle stick formation at resistance range 13270, signaling a potential for further downside.

A daily candle close below the 12950 range could open up a genetic test of year-to-date lows. A jump from here could lead to a genetic test of the 13270 area.

Important intraday levels that may be worth seeing:

Support Areas

Areas of resistance

FTSE 100: Flat as Inflation Increases UK Debt Costs

That FTSEdecreased by about 0.50% on Thursday’s European Open as the UK government borrowed more than expected last month due to rising inflation. Data released by the Office for National Statistics (ONS) showed this CChancellor Rishi Sunak borrowed a further £ 14 billion ($ 17 billion) in May, which was £ 2 billion. higher than city economists had predicted.May’s borrowing lifted national debt, excluding public sector banks, to £ 2.36tn, or about 95.8% of GDP.“Rising inflation and rising debt interest costs pose a challenge to public finances, as they do to family budgets,” Sunak said in a statement.ement.

British commuters, meanwhile, have had to deal with a repeat of Tuesday’s extensive rail stop today. The RMT union said a nationwide strike would continue after the deal negotiations broke down.

UK manufacturing companies have been hit by a slowdown in demand and new orders amid a looming recession, new data showed on Thursday.According to S & P Global’s survey, the June overall PMI index, which follows economic activity, was unchanged at 53.1, however, growth in new orders this month was the weakest since March 2021.

The FTSE recovered as the session progressed, trading flat-to-marginally lower as we approach the United States market open. The energy sector was the biggest winner of the session with 1.6%, while notable promoters included Ocado Group PLC, BP ​​PLC and Shell PLC with gains of 3.7%, 2% and 1.5% respectively.

FTSE 100 Daily Charts – June 23, 2022

DAX, DOW and FTSE mixed as global growth signals slowdown

Source:IG

The FTSE closed like a bearish engrossing daily candle of resistance range 7150, signaling the potential for further downside. We have since withdrawn from resistance to hover just above the key psychological level of 7000. At this stage, we appear to be bound between resistance at 7150 and recent support at the 6950 area. The intraday interval can provide an option if we can not break the support or resistance levels at 6950 and 7150 respectively.

Important intraday levels that may be worth seeing:

Support Areas

Areas of resistance

DOW JONES: Flat while markets consider fears of recession

US equdies had a mixed pre-market as an initial decline of approx. 200 points have been obliterated as we approach the US market openly. This continues yesterday’s trend, with US equities fluctuating back and forth between losses and gains. Bond yields fell as comments of Chairman of the Federal Reserve Jerome Powell and growth data in Europe created fears of a global downturn. US 10-year yields traded close to a two-week low of 3.08%. Chair Powell accepted that steep rate hikes could trigger a US recession, saying the task of creating a soft economic landing is “very challenging” in testimony to the Senate on Wednesday.

The money markets indicate reduced odds that the central bank will raise interest rates beyond the end of the year, and rising odds of an interest rate cut from May 2023. This may partly explain the fluctuation in US equities between gains and losses, while markets discuss how far the Fed will stretch its interest rate cycle.

On the calendar front, we still have the S&P Global Composite PMI Flash, the Fed Bank’s stress test results and, of course, the testimony of Fed Chairman Powell before the House Financial Services Committee.

DAX, DOW and FTSE mixed as global growth signals slowdown

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DOW JONES Daily Chart- June 23, 2022

DAX, DOW and FTSE mixed as global growth signals slowdown

Source:IG

From a technical perspective, yesterday’s daily light shutdown gave no clear indication, closing indecisively. Current area bound on a daily chart between 31000 and 29500 areas. Unless we get a daily candle close above the resistance range (31000) or close below support (29500), we are likely to remain range. Intraday opportunities may exist within range.

Key levels within the day that may be worth seeing:

Support Areas

Areas of resistance

Written by: Zain Vawda, Marketing Writer for Technewscity

Contact and follow Zain on Twitter: @zvawda