European Indices traded lower on Thursday with the DAX declining by 0.38%. Hopes of a limited US-China trade deal are fading and with it the appetite for riskier assets as trade talks are stalled by a lack of compromise over agricultural purchases. Moreover, The German economy remains burdened by the ceaseless trade war and its 3rd quarter GDP figure showed a narrow escape from contraction. Thus, there is little to support upside potential, however US-China headlines continue to bear the strongest influence over market sentiment and traders may twist the narrative at any given moment to drive prices higher. Separately on economic data, The Eurozone releases its trade balance for September and the US publishes retail sales data which may influence direction during the day.
The DAX extended losses from the previous session by 50 points to close at 13180 on Thursday. The index is trading within the bounds of the parallel Bollinger bands and remains in a consolidation phase that would be subsequently followed by either an advancement or a retracement. Until we see price break above the resistance at 13300 or break below the support at 13140, price action should remain range-bound and the DAX directionless.
Resistance: 13311 /13430