The German blue-chip index traded 0.34% lower on Thursday as trade-related concerns rise on news that China doubts the potentiality of a long term trade deal with the US despite having made progress in regards to phase 1 agreements. In terms of data, Germany published weaker than expected retail sales data while the Eurozone showed unemployment held steady at 7.5% and the economy grew by 0.2% in the third quarter, no different from the previous. Today there are no major economic releases out of the Eurozone which will leave influence to trade sentiment and impactful data out of the US. Earlier today China released its Caixin Manufacturing PMI figure which came in better than expected and contrasted the nation’s weak official manufacturing PMI figure for October. The data should have little influence as the The DAX may take directional cues from Wall Street as the US publishes its ISM Manufacturing PMI figure and monthly jobs report for October which includes non-farm payrolls, unemployment rate and wages growth.
The DAX closed 43 points lower at 12866 on Thursday. The price briefly dropped below the support at 27830 to a low of 12792 before edging back up. The RSI reading is seen trending lower while DAX futures are currently pointing higher however struggling to break above the resistance at 12955. A sustained move above 12955 would be required to enable gains towards the 13000 resistance level. Overcoming 13000 would signal a bullish continuation towards 13080 and 13135. Failure to break above 12955 would leave the DAX in consolidation mode until a break below the low 12792 targets the lower support at 12740 followed by 12650.
Resistance: 13000 /13130