German stocks may open flat this morning over lack of trading cues, as investors fret about rising trade tensions and the sell-off in emerging market currencies, particularly in Argentina and Turkey, and the concern that this turbulence could spread to other countries. Markets across Europe fell yesterday on trade-related concerns after US-Canada trade talks ended with no deal. At 1200 UTC+3, Eurostat releases euro area producer prices for July. Producer price inflation is seen rising to 3.9% in July from 3.6% in June.
From a technical perspective, the DAX is yet again trading between the €12,300's and the €12,400's consolidation area, directionless and low volatility as investors await some news. Short-term traders can benefit from this narrow range however in the daily timeframe, the technical indicators are pointing to the downside signaling more weakness in the market. The next level to have in mind is the €12,125 support barrier. On the flip side, upside moves are likely to find resistance in the €12,500 to €12,570 area.
Support: 12320 12250
Resistance: 12415 12570