Welcome to Extreme Investor Network, your go-to source for expert views on the stock market, trading, and all things Wall Street. Today, we are diving into the US Producer Prices and expert insights on US inflation and the economy.
Arch Capital Global Chief Economist, Parker Ross, recently commented on the New York Fed’s Survey of Consumer Expectations. He noted that while inflation expectations remain well-anchored, consumers are becoming increasingly worried about servicing their debt. Job-finding prospects are on the decline, and home price growth is expected to remain near-trend. These insights paint a concerning picture for those anticipating a soft landing for the US economy.
Looking at the near-term outlook, trends in the DAX index will be influenced by corporate earnings, US producer and consumer price trends, and US labor market data. Softer inflation figures and a rise in US jobless claims could reignite fears of a hard landing in the US, impacting buyer demand for DAX-listed stocks. Investors should also keep an eye on USD/JPY trends, as US recession fears might push the pair below 145, potentially leading to concerns about another Yen carry trade unwind.
In the futures markets, the DAX and the Nasdaq Mini were showing modest gains, indicating cautious optimism among investors. It’s essential for investors to stay informed with corporate earnings and inflation data, monitor economic calendars, and follow expert commentary to effectively manage trading strategies and risk.
When it comes to technical indicators for the DAX, the daily chart shows the index hovering above the 200-day EMA but below the 50-day EMA, signaling a bearish near-term outlook but a bullish longer-term perspective. A break above 18,000 could propel the DAX towards the 50-day EMA and potentially to 18,500. On the flip side, a break below the 17,615 support level and the 200-day EMA may see the bears targeting the 17,003 support level. The 14-day RSI at 41.01 suggests a possible drop to the 17,003 support level before entering oversold territory.
As we navigate through market uncertainties and economic data releases, it’s crucial to stay up-to-date with the latest news and analysis to make informed investment decisions. Trust Extreme Investor Network to provide you with unique insights and expert perspectives to help you thrive in the ever-evolving world of stock trading and investing.