ANALYSIS
NQ100 Finds Support from PPIApr 14
DAX40:Concerns About German Companies Remain in Index Pricing
According to the Federal Statistics Office in Germany, the consumer price index (CPI) increased by 0.4 percent compared to the previous month to 7.4 percent, the highest level since January 1974. On the other hand, the natural gas contracts, which remained high in the European session, indicate that the cost pass-through will continue. 10-year German bonds are priced at around 1.0 percent in the debt instruments market, which is pricing in the expectation that the European Central Bank (ECB) will raise interest rates in the third half of the year. Under this outlook, German companies that experience cumulative cost pressure are predicted to have higher financing. This indicates a downward movement in the pricing of the DAX40 index. Technically, the index, which maintains its short-term selling potential under the 50-period weighted moving average (WMA), which is the value of 13 755, can deepen its losses to 13 170, which will be a 2-month low, behind 13 325, if it can break the 13 480 support on the downward path it has been attached to for a long time. In a possible transition above the 50 WMA, the 13 880 – 14 060 range may stand out as a stabilization zone.
