Wednesday’s session confirmed the fears that were associated with the bearish engulfing pattern, which was formed by daily candles from Monday and Tuesday. By noon there were still upward attempts, but in the afternoon the bulls abandoned further purchases. The final result however, is not so bad. Two indexes moved slightly below zero: DAX -0.63% and MDAX -0.23%, while the other two closed inside positive territory: SDAX +0,48%, TECDAX +1.62%. Among the DAX30 companies, 8 have increased (Deutsche Boerse +1.69%), but 22 declined (K+S -4.76% and Linde -2.86%).
Wednesday’s session was setup by FED head – Janet Yellen, who in his speech at the Washington Economic Club said that the economic situation is improving and the incoming data are in line with expectations. Confidence that the first rate hike will take place in December is growing. On Thursday, at 1:45PM (CET) European Central Bank will publish its decision on EZ interest rate, and 45 minutes late Mario Draghi conference will start. At this time all the eyes will be focused on ECB President. Expectation connected with further monetary policy loosening are really high, so small cut or no decision will disappoint investors.
