EU market opening and PDD on the radar

A new day, a new week,

European markets will open mixed today as investors digest the latest developments from the Jackson Hole symposium and prepare for a busy day of economic data and corporate earnings releases. With global markets still reacting to comments from central bankers over the weekend, particularly those from Federal Reserve officials, market sentiment is likely to be cautious as traders assess the implications for future monetary policy.
Key releases in the economic calendar:

Ifo Business Climate Index (August):

The Ifo Business Climate Index, a key indicator of economic health in Germany, will be released this morning. This index provides information on the current business environment and expectations for the next six months. A stronger than expected result could boost confidence in the German economy, while a weaker result could increase concerns about a possible slowdown.

Durable Goods Orders (MoM) (Jul)

Durable goods orders (MoM) for July 2024 showed a significant increase of 4.0%, a notable recovery from the sharp decline of 6.6% in June 2024. This positive development is an indicator of rising demand for durable industrial goods, which can be seen as a sign of economic resilience. Investors and analysts will be watching closely to see how this data could influence expectations for future economic growth and monetary policy decisions.

Earnings to watch

PDD Holdings (PDD)

PDD Holdings is expected to announce its Q2 2024 earnings before the market opens. The company, known for its rapid growth in e-commerce, is expected to report earnings per share of $20.43 on expected revenue of $99.42 billion. Investors will be particularly interested in updates on the company's expansion strategy, especially in international markets, as well as its profitability given its high spending on advertising and promotion.

Technical analysis of PDD Holdings

Source: FOREX.com

Bollinger Bands: The price is fluctuating within the upper and lower bands, indicating moderate volatility. The price is currently close to the upper band.

Support and resistance levels:

Support: $130.00

Resistance: 160.00 $

Trendlines: An ascending channel pattern is visible, indicating a long-term bullish trend.

Moving averages: The price is above the 50-day and 200-day moving averages, confirming a bullish outlook.

RSI: The RSI indicator is hovering around 54, indicating neither overbought nor oversold conditions.

Stochastic Oscillator: The Stochastic Oscillator is at 32, indicating possible upward momentum.

Overall sentiment: Bullish

The chart shows an overall bullish sentiment as the price is above the major moving averages, has an ascending channel and has favorable indicator readings.

Market Sentiment

With the abundance of economic data and earnings reports, European markets are likely to see some volatility as investors react to the news. The aftermath of the Jackson Hole symposium continues to weigh on market sentiment, particularly as investors assess the impact of central bank communications on future interest rate moves. Traders will also be watching closely to see how the European economy holds up in the face of rising inflation and economic uncertainty.