GER30 – H4
German GDP contracted by 0.7% q/q in Q4, from +1.7% prior, as per today's preliminary data, disappointing investors. Annualized GDP grew at 1.4% y/y in Q4, from +2.9% prior (revised from 2.5%).
These figures keep the German index under pressure, while geopolitical concerns in eastern Europe and prospects of monetary tightening also weigh.
Military escalation in Ukraine could disrupt natural gas supply in Europe and lead to price spikes, with the United States calling for a meeting of the United Nations Security Council on Monday, to address "Russia's threatening behavior against Ukraine and the build-up of Russian troops on Ukraine's borders and in Belarus" .
GER30 loses around 2% this week and is vulnerable to fresh 2022 lows (14,840-10), but it may be early for a bigger decline that will test 14,500-14,448.
The index managed to stage a two-day recovery though and along with the Euro's demise, it may be able to push back, but will need improved sentiment in order to break above 15,679-15,720 and ease downward pressure. Its EMA200 and descending trend-line from January's record high, converge on that area.
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.