ANALYSIS
NQ100 Finds Support from PPIApr 14
DAX40:Index is Under Pressure by ECB's Rate Signal
The European Central Bank (ECB) concluded its June monetary policy meeting. At the meeting, the bank, kept the refinancing rate at 0 percent, the marginal funding facility at 0.25 percent, and the deposit rate at minus 0.50 percent, in line with market expectations. ECB announced that it would end its asset purchase program (APP) in July and also signaled a 25 basis point rate hike. As the first reaction in the markets, 10-year German bonds renewed their 8-year high with 1.373 percent, while strong selling pressure occurred in the DAX40 index. If the index, which is technically heading towards the correction path by ending the rising wedge formation, can sag below the 14 135 support, it can be withdrawn to the 13 820 level, which is cut by the psychological 14 000 and then the Fibonacci 61.8 percent rejection line. Above will be 14 415 – 14 585 strong resistance zone.
