European Market

The German index is on the back foot this week, but the formation of a Golden Cross on the daily chart, shows potential for further advance

Helped by recent encouraging data and potentially slower pace of hikes by the ECB and the Fed, the German Index heads towards its eighth profitable week

The German Index loses steam after its six-week rally and consolidates its gains, as today’s Eurozone inflation report does not help it find direction

The German index is in its sixth consecutive profitable week, in a strong rebound from October’s two-year lows, but loses steam over the last couple of days

The GER30 daily threatens to fall back into its weak zone, between the lower blue and red bands (green vertical rectangle). Furthermore, the hourly chart shows bearishness with its EMAs and stochastic having crossed negatively (black ellipses). The S1 pivot is acting as short-term support. However, the stochastic is below 20 (blue arrow). The longer it holds this position, the greater the likelihood it fails.

The bank had endured several knocks, including losing $5.1bn when Archegos Capital Management collapsed. It may need to raise capital but hasn't announced new fundraising endeavours yet. However, selling new shares will dilute the value of existing shares, and increasing debt will hurt its balance sheet further

The German index extends is losses to new two year lows, as central banks offer hawkish commentary, sustaining market apprehension over an economic downturn

Germany’s Producer Price Index surged to the highest levels ever in August as today’s data showed, following recent elevated Consumer prices, in the aftermath of the ECBs aggressive rate hike

The German index covers earlier losses but cannot benefit from better than expected GDP figures from Eurozone, as markets brace for Thursday’s interest rate decision by the European Central Bank

Lizz Truss is the 56th British prime minister. She beat rival Rishi Sunak, the former chancellor, pledging to tackle the UK's energy crisis. A £100 billion package is being considered to freeze rising energy bills. She has also pledged to cut taxes.

The current pressure is due to Russia indefinitely cutting off gas supplies via the Nord Stream 1 pipeline. Gazprom has blamed this on a technical issue. However, the primary interpretation sees this as a political statement due to Western counties implementing a price cap on Russian oil - the latest sanction following its invasion of Ukraine.