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DAX Index, FTSE 100, STOXX 600: Tech, Retail Drive Markets to Year-End Highs
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European shares rise with STOXX 600 and Dax Index FTSE 100 gains despite housing dip, driven by tech, retail, and energy sectors.
Highlights
- STOXX 600 poised for 13% annual gain.
- UK’s FTSE 100 shows resilience, sector gains.
- Bullish outlook amid global policy shifts.
European Shares Gain Momentum
European shares saw an uptick on the final trading day of 2023, with media and energy sectors leading the charge. The pan-European STOXX 600 index added 1.38% by 12:46 GMT, aligning for its best December since 2021 and a seventh consecutive weekly gain. This rise is partly fueled by global market reactions to the U.S. Federal Reserve’s hints at potential interest rate cuts next year. Germany’s Dax Index is trading 16746.13, up 44.58 or +0.27%. The UK’s FTSE 100 is at 7736.94, up 14.20 or +0.18%.
Performance Highlights and Sector Advances
The STOXX 600 is on course for a 13% annual gain, with technology and retail sectors outperforming. Notably, the index rebounded over 12% from its March lows, triggered by banking sector upheavals. Italian stocks notably excelled with a nearly 30% increase, while Swiss and British indices lagged behind.
Key Sector Movements
Media stocks and personal goods sectors witnessed gains, with energy stocks also rising in response to higher crude oil prices. Spanish stocks showed positive movement following a decrease in the inflation rate. In the UK, despite a dip in house prices, the FTSE 100 index edged up, supported by industrial metal miners and energy stocks, though gains were tempered by the decline in precious metal miners.
British Market Resilience and Outlook
British equities demonstrated resilience amidst challenging economic conditions, with the FTSE 100 and mid-cap stocks recording yearly gains. Aerospace and defence sectors led with significant increases. Mortgage rates’ decline suggests potential stability in house prices for the upcoming year.
Short-Term Forecast: Bullish
The current market scenario, characterized by sector-specific gains and resilient performance in challenging economic conditions, points towards a bullish outlook for the short term. Investors are advised to stay alert to evolving global monetary policies and market reactions.
Dax Index Technical Analysis
FTSE 100 Index Technical Analysis
The FTSE 100 Index, with its current daily price at 7733.25, exhibits a bullish trend. It stands above both the 200-day and 50-day moving averages, at 7560.52 and 7492.56 respectively, indicating strong upward momentum.
The index has surpassed the minor support level of 7687.48, further reinforcing the bullish sentiment. Additionally, its position above the main support level of 7524.87 suggests a solid foundation and resilience in the market. In the absence of specific trend line support and resistance, the focus shifts to these moving averages and support levels.
The index’s performance above these key technical markers, especially the moving averages, points towards a bullish market sentiment with potential for continued upward movement.
About the Author
James Hyerczykauthor
James Hyerczyk is a U.S. based seasoned technical analyst and educator with over 40 years of experience in market analysis and trading, specializing in chart patterns and price movement. He is the author of two books on technical analysis and has a background in both futures and stock markets.
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