Equities moved higher on Tuesday, pushing the US tech-heavy Nasdaq 100 index above the psychological level of 15,000 USD. At the same time, EU bourses were trading circa 1% higher, with the German DAX rising to fresh one-month highs above 14,700 EUR.
German data ignored
Earlier today, the German Gfk consumer confidence survey, a leading index that measures the level of consumer confidence in economic activity, declined sharply, printing -15.5 for April, down from -8.5 in March, as inflation and the war in Ukraine dented the sentiment.
Furthermore, the German import price index came out at 26.3% yearly, slightly lower than the 26.9% scored previously, but still showing massive inflation pressures. Nevertheless, the DAX remained 1% higher on the day.
Stocks remain resilient
Sentiment could have improved after the Financial Times reported that Russia would no longer demand Ukraine be “denazified” in the upcoming negotiations.
“The resilience of global stocks given the cocktail of risks facing the global economy is truly impressive, but this stoicism is likely to face continuing tests as the impact of mounting prices, and the actions of central banks continue to feed through, not to mention the ongoing geopolitical concerns.” Russ Mould, investment director at AJ Bell, said today.
Also read: Covid fears sent crude oil down
Later in the day, the Conference Board’s Consumer Confidence Index and January Housing Price Index will be featured in the US economic calendar. However, these data will unlikely cause any market movements.
Additionally, Federal Reserve Bank of New York President John Williams will speak at a webinar hosted by the Federal Reserve Bank of New York, likely confirming the Fed is ready to deliver a 50 bps rate increase at its next meeting.
Approaching major resistance
The DAX index is now rising toward the critical resistance level of 15,000 EUR, where previous “monster” support used to be. Considering the recent steep rally, traders might be inclined to take some profits in that area, likely causing a correction.
However, should the DAX jump above 15,000 EUR, it could be a strong bullish impetus, possibly sending the index toward the 200-day moving average (the green line) at 15,450 EUR.