DAX, CAC and MIB Forecasts – EU Indices Sluggish Day Before ECB Rate Decision

DAX Technical Analysis

The German DAX has fallen pretty significantly early on Wednesday, although we have to be honest here, we bounce from the 200-day EMA and the 24,125-euro level, so there are signs of life.

It’s worth noting that we have a couple of different big themes for the day. Number 1, interest rates have rallied a bit, but we also have SAP, the German massive tech company, dropping over 3% during the day, so that’s weighing on the index, as well as Siemens AG and Siemens Energy falling. There is a little bit of a silver lining with semiconductors doing okay, and of course, defensive safe havens such as Deutsche Telekom are helping support the market a little bit.

CAC Technical Analysis

The Parisian CAC is finding itself a little bit choppy. It has pulled back to the 50-day EMA. The pharmaceutical giant Sanofi has dropped 1% as it had some issues with a study on one of its drugs, but we also have a lot of choppy sideways action in luxury. So with that, it does make a certain amount of sense that we find ourselves bouncing enough to make this a fairly calm and range-bound trading session.

MIB Technical Analysis

The MIB in Italy is seeing a bit of financial pressure. The new Chinese banking regulations seem to be particularly bad for Italian banks, and that, of course, is providing a little bit of a headwind. That being said, there is a little bit of a bounce later in the day right off the 49,700 level, so I do think that comes into the picture.

Also keep in mind the Middle East will have a major influence on all of these indices, and keep in mind that during the session on Thursday, we will have an ECB interest rate decision, and in an index like the MIB that’s heavily laden with banking, that obviously has a certain amount of influence as well.

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