GER30 Cautious as the World Bank Downgrades Growth Forecasts

  • GER30

GER30 Analysis

The World Bank downgraded its growth projections for the year and its President David Malpass, warned that "a recession will be hard to avoid" for many countries. [1]

Global GDP for 2022 is now projected to grow by 2.9%, down from 5.7% in 2021 and the 4.1% forecast in January. Euro Area GDP is seen at 2.5% in the current year, from the 5.2% growth in 2021 and the 4.2% projection in January.

Eurostat revised higher the Euro Area GDP for the first quarter today, which grew by 5.4% year-over-year, from 5.1% preliminary, while Industrial Output in Germany rose by 0.7% month-over-month in April, compared to 0.7% prior (revised).

Markets are jittery, as fears of stagflation and tightening monetary policies weigh, while investors brace for Thursday's monetary policy decision by the European Central Bank (ECB) and Friday's inflation update from the US.

GER30 is on the back foot today, with the technical landscape little changed from Monday's analysis, as it has been trading between key technical levels since late-May.

The German index had a solid performance last month, but had rejected the 200Days EMA on Monday and is susceptible to pressure towards the 200H4 EMA and the upper border of the daily Ichimoku Cloud (14,230-14,190). Closes below this level could open the door to further decline towards and beyond the ascending trendline from the 2022 lows (13,700), although this would need a strong catalyst.

On the other hand, GER30 started the week on the front foot and has not lost the ability to push again for the 14,730-14,821 region, but 15,387 is distant at this stage.

Nikos Tzabouras

Senior Financial Editorial Writer

Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.

With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.



Retrieved 01 Dec 2023

${} / ${getInstrumentData.ticker} /

Exchange: ${}

${} ${getInstrumentData.divCcy} ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%) ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%)

${getInstrumentData.oneYearLow} 52/wk Range ${getInstrumentData.oneYearHigh}

Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interests arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed here.

Past Performance: Past Performance is not an indicator of future results.

Spreads Widget: When static spreads are displayed, the figures reflect a time-stamped snapshot as of when the market closes. Spreads are variable and are subject to delay. Single Share prices are subject to a 15 minute delay. The spread figures are for informational purposes only. FXCM is not liable for errors, omissions or delays, or for actions relying on this information.