Summary of the session 17/09/2018
The beginning of the week on the German trading floor ended with a moderate drop of 0.23% after three bullish sessions in a row. In the euro area, the final reading of HICP inflation for August was published, which amounted to 2.0%/y, which was in line with analysts’ expectations. Tomorrow in Salzburg, an informal EU summit is scheduled to be launched by British Prime Minister Theresa May, this may have an impact on DAX, but today Mario Draghi will have a speech.
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Among the components of the DAX index, the best result was recorded by BAYER, which gained 1.50% and in the meantime ThyssenKrupp increased by 1.48%. The worst result was Linde falling 2.49% while Henkel lost 2.36%. The total number of losing companies exceeded the number of gaining 369 to 317.
After the yesterday’s booring day the market tries to get up, the lower opening has been used to accumulate in the area of the daily pivot. DAX reacted very well yesterday to “weekly pivot” at 12,040, where made a quick move closing the opening gap, so this level should not be broken if the market is to continue to grow. The first local resistance of 12 110 points, its overcoming should lead to a test of the area around 12 150/60. Strong support today is 12,020.
Looking at the chart of the index power against the background of the others, it can be seen that DAX suffered the most during declines and is now the slowest to rise. The other European indices perform better, especially the French CAC40 which has already returned to zero. The strong Nikkei, which has come today to levels not seen since February this year, may translate into growth in Europe and the USA.