DAX Index, FTSE 100, STOXX 600: European Markets Strengthen in Final 2023 Trading Week

Highlights

• DAX, STOXX 600 gain, driven by oil, gas, tech sectors
• FTSE 100, 250 reach new highs, fueled by metal miners
• Bullish short-term outlook for European markets

European Markets: DAX and STOXX Gain Amidst Positive Sentiment

In the last trading week of 2023, European markets, particularly the DAX and Stoxx 600 indexes, have shown notable gains. The Stoxx 600 index climbed 0.25% by midday in London, spurred by substantial increases in oil and gas, as well as technology stocks. These sectors, each rising close to 1%, have propelled the Stoxx 600 near its record high from November 2021. Similarly, Germany’s DAX index mirrored this upward trend. The bullish sentiment follows a break in trading for the Christmas holidays, with markets reopening to a wave of optimism.

Key Performers in the European Market

Significant movements were observed in individual stocks, with Vestas leading the surge with a 6% rise after securing a new order. This positive news rippled through the wind energy sector, elevating peers like Siemens Energy. However, Danish firm Maersk countered this trend, with its shares dipping by 4%. The short-term forecast for the DAX and Stoxx 600 remains bullish, driven by these sectoral gains and overall market optimism.

British Market: FTSE Indices Show Strength

In the UK, the FTSE 100 and FTSE 250 indexes have also experienced uplift, buoyed mainly by metal miners and favorable market conditions. The FTSE 100 rose by 0.6%, while the midcap FTSE 250 index was up 0.3%, reaching their highest points since March 2023. This surge is attributed to expectations of interest rate cuts and a stronger showing in manufacturing data from China.

FTSE’s Bullish Outlook Amid Corporate Developments

In corporate news impacting the FTSE indices, Anglo American and AstraZeneca recorded significant gains. The former’s shares jumped following news of a potential stake sale in a major mining project, while the latter’s shares rose after announcing an acquisition aimed at expanding its cell therapy operations. The bullish forecast for the FTSE 100 is underpinned by expectations that the Fed and other central banks might initiate rate cuts, suggesting a positive short-term outlook for the UK market.

Dax Index Technical Analysis

Analyzing the DAX Index using the provided technical indicators reveals a bullish market sentiment.

The current daily price of 16759.76 is comfortably positioned above both the 200-day and 50-day moving averages, set at 15788.88 and 15822.50 respectively. This indicates a strong upward trend, as the index is trading well above these key averages.

Additionally, the DAX is currently above the main support level of 16208.93. The absence of specific minor and main resistance levels in the provided data suggests limited immediate barriers to upward price movement.

Overall, the DAX’s performance above crucial moving averages and support levels points to a continued bullish trend in the market.

FTSE-100 Technical Analysis

The FTSE 100 Index is currently exhibiting bullish market sentiment. The index’s daily price of 7742.44 stands above both the 200-day and 50-day moving averages, which are 7559.26 and 7489.07 respectively. This positioning indicates a strong upward trend, as it is trading higher than these significant average price benchmarks.

Additionally, the index is above the main support level of 7524.87, further reinforcing its bullish stance. Approaching the minor resistance level at 7804.79, the market shows potential for continued upward movement. The lack of a defined main resistance level suggests that there may be room for further gains before encountering significant selling pressure.

Overall, the technical indicators point towards a continued bullish trend for the FTSE 100 Index.