The DAX 30 (CFD: GER30) was lower by 1.89% at the time of writing. The softest sectors are Basic Material and “Consumer, Cyclical” (Auto manufacturers and related firms), while Financials and Consumer, Non-cyclical are outperforming.
At this stage, there is no strong consensus behind the trigger of today’s decline, but we note that overnight, the Caixin China PMI Mfg. for April declined to 49.4 from 49.7 and thereby failed to meet the Bloomberg news projection of 49.8. The soft Chinese data reports tend to affect the Basic Material sector, which is today’s biggest loser in the DAX 30 and the FTSE 100.
This morning, Markit UK PMI Manufacturing for April declined to 49.2 from 51 and vs. the 51.2 projected per a Bloomberg News survey.
Technically, the DAX 30 is short-term bearish as the price has been creating lower lows and lower highs following the April high of 10,488. The last swing low of importance for this short-term bearish trend is the April 29 high of 10,253.
The next support level is the April 18 low of 9910, followed by the April 11 high of 9750 and the April 12 low of 9619. Resistance levels are yesterday’s high of 10,155 followed by the April 29 high of 10,253 and the April 28 high of 10,334.
The next data report on deck, which might affect the DAX 30, is Eurozone Producer Price Index. It is a relevant indicator as changes to the Producer Price Index may affect the Consumer Prices Index, which in turn affects the monetary policy of the ECB. A Bloomberg economist’s survey projected a decline of 4.3% YoY from 4.2% in February.
DAX 30 | CFD: GER30
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