However, auto stocks and banking stocks closed in positive territory.
Volkswagen It rose by 2.61%. Investors reacted to the news that Volkswagen plans to sell its stake in Trayton SE. mercedes benz group and Porsche They closed up 1.42% and 1.04%, respectively. BMW It increased by 0.78%.
Commerzbank and deutsche bank They rose by 3.21% and 1.44%, respectively. Buying interest in bank stocks increased following news that French President Emmanuel Macron supports the consolidation of Europe's banking sector and the sale of Banque de France to a European rival.
Eurozone GDP, industrial production and profits
On Wednesday (May 15), eurozone GDP and industrial production figures will attract investors' attention.
According to preliminary figures, the euro zone economy expanded by 0.3% in the first quarter of 2024, after contracting by 0.1% in the fourth quarter of 2023. Revisions to initial estimates may impact market risk sentiment.
Nevertheless, industrial production numbers must also be taken into account. Economists expect industrial production to rise 0.5% in March after rising 0.8% in February.
While this statistic will be of interest to investors, the company's earnings should also be on their radar.
Allianz, Commerzbank, Merck and ThyssenKrupp AG are among the major companies to announce their results.
US Economic Calendar: US CPI Report, Retail Sales, FOMC Member Speeches
Wednesday's all-important US CPI report will impact market risk sentiment. Economists expect the annual U.S. inflation rate to fall to 3.4% from 3.5% in April. Additionally, economists expect core inflation to fall from 3.8% to 3.6%.
Weaker-than-expected inflation data could increase investors' expectations for a September Fed rate cut. A less hawkish Fed interest rate policy could increase buyer demand for riskier assets.
However, U.S. retail sales could influence the Fed's interest rate trajectory. Economists expect retail sales to rise 0.4% in April, following a 0.7% rise in March. Lower-than-expected retail sales could signal a softening outlook for inflation and less hawkish Fed interest rate guidance.
We need to monitor not only the numbers, but also what FOMC members are saying. FOMC members Neel Kashkari and Michelle Bowman are on the economic calendar and are scheduled to speak. Reaction to the US CPI report, retail sales and comments on the Fed's interest rate path could move the numbers.
short term outlook
DAX short-term trends depend on US CPI reports, central bank comments, and corporate earnings. However, a better-than-expected US CPI report could impact investor bets on multiple ECB interest rate cuts and buyer demand for DAX-listed stocks.
In the futures market, the DAX and Nasdaq Mini rose 64 points and 9 points, respectively.
DAX technical indicators
daily chart
DAX comfortably rose above the 50-day and 200-day EMA, confirming the bullish signal for price.
If the DAX rises above Friday's (May 10) all-time high of 18,846, it could signal a rise to 19,000.
Economic indicators from the euro area, corporate earnings, US inflation, US retail sales, and the chatter of FOMC members need to be taken into account.
However, a decline below 18,700 could signal a decline towards the 18,500 handle. If it breaks below 18,500, the bears could run away with the 18,350 handle.
The 14-day RSI of 66.77 shows that the DAX rose to an all-time high of 18,846 on Friday before entering overbought territory.