DAX drops due to rising tensions. On the calendar today

After fears of a possible escalation in the Middle East following the ground offensive launched by Israel in Lebanon had weighed on sentiment, the DAX had to close with more significant losses on the second trading day of the week.

After the friendly instructions from the US leading stock markets, the German leading index opened the morning with a gain of almost 0.5%. After the economic data was better than expected, the DAX was able to maintain its position in positive territory. The German (industry) purchasing managers‘ index came in at +40.6%, slightly above consensus (+40.3%), while the purchasing managers’ index for the eurozone was also slightly above expectations.

After reports of an Iranian rocket attack on Israel were confirmed in the afternoon, the DAX had to end the trading day with a discount of almost -0.8% at the day's low, after the US leading stock markets weakened. This led to a short-term deterioration in the DAX chart picture.

The newly triggered short signal at the stochastic RSI indicates that the correction that began at the beginning of the week may continue. However, we are still above the 20 EMA, the 50 EMA and the 200 EMA, so this can still be interpreted as bullish. At the moment, we are in a consolidation, so it cannot be ruled out that the DAX will continue its previous upward trend and then try again to reach the all-time high of 19,496 points.

Once again, some significant economic data will be released today, Wednesday. In addition, the EU labour market data and the VDMA data on incoming orders in the German mechanical engineering sector will be published in the morning. The MBA mortgage applications and the ADP labour market data are expected to provide new impetus in the afternoon.

At the moment, the DAX is valued at a price increase of +0.2%. If the DAX falls below the 19,000 point mark, the long scenario will no longer be relevant. This is the elvel of the current lower level of the upward trend channel.

In other markets

All US indices posted declines by yesterdays close, with the S&P 500 down -0.9% and the Nasdaq leading the losses with -1.4%.

Gold regained Monday's losses thanks to a rise in safe-haven assets, but failed to regain the 2700 mark.

WTI closed above $70, with crude prices rising by as much as 8.5% the day before. 

AUD/JPY broke through resistance near 100 and reached yesterday's low of 98.50. 

EUR/USD dropped below the 1.11 level and reached a 13-day low.

The DXY index rose for the second day in a row.

Calendar for today (GMT+2)

11:00 – EU unemployment rate

11:30 – EU ECB member Lane speaks

11:45 – DE Bundesbank Vice President Buch speaks

12:00 – USA OPEC press conference

13:30 – EU ECB member Elderson speaks

13:45 – DE Bundesbank member Balz speaks

14:15 – USA ADP Employment Change (Sep)

16:30 – US Crude Oil Inventories

18:45 – EU ECB Member Schnabel speaks