Commerzbank The better-than-expected profit extended gains from Wednesday, rising 70%. deutsche bank It fell by 1.25%.
Focus on inflation in China and the euro area
Economic data from China is likely to set the tone for trading on Friday. Lower-than-expected retail sales overshadowed a rise in industrial production and tested buyer demand for riskier assets.
Industrial production rose 6.7% in April from a year earlier, after rising 4.5% in March. However, retail sales increased by 2.3% compared to the same month last year, compared to 3.1% in March.
China's numbers will set the tone, but the eurozone's final inflation figures also deserve investors' attention.
According to preliminary figures, the annual inflation rate in April remained at 2.4%, unchanged from March. Preliminary revisions may impact sentiment on the ECB's interest rate path. If the downward revision materializes, buyer demand for DAX-listed stocks may increase.
Beyond the numbers, investors should continue to track the ECB's comments. ECB board member Luis Deguindos is scheduled to speak on Friday. His views on the path of ECB interest rates after June will require consideration.
US economic calendar: Fed focuses
Later in Friday's session, chatter among FOMC members could influence market risk sentiment. FOMC member Christopher Waller is scheduled to speak on Thursday, amid growing calls for the Fed to continue raising interest rates over the long term.
Views on inflation, the labor market, and the Fed's interest rate path will be of interest to investors. Before the April report was released, Christopher Waller supported the Fed's long-term policy of raising interest rates. Any deviation from his previous views could move the dial.
short term outlook
The short-term trend of the DAX will depend on inflation numbers from the euro area and central bank comments. Eurozone inflation data being softer than preliminary figures and support for ECB interest rate cuts from June onwards could spur buying demand for DAX-listed stocks. However, hawkish comments from FOMC members could test market risk sentiment.
In the futures market, the DAX fell 48 points and the Nasdaq Mini fell 3 points.
DAX technical indicators
daily chart
DAX comfortably rose above the 50-day and 200-day EMA, confirming the bullish signal for price.
The bulls’ run could reach 20,000 if DAX breaks through Wednesday’s (May 15) all-time high of 18,893.
Investors need to consider euro zone inflation rates and central bank comments.
However, a break below 18,750 could cause the DAX to fall towards the 18,500 handle.
The 14-day RSI is 64.30, indicating a return to Wednesday's all-time high of 18,893 before entering overbought territory.
