European Open: DAX futures rise overnight ahead of flash CPI data for Europe

Asian Indices:

• Australia's ASX 200 index fell by -16.2 points (-0.23%) and currently trades at 6,982.10
• Japan's Nikkei 225 index has fallen by -114.9 points (-0.41%) and currently trades at 28,080.68
• Hong Kong's Hang Seng index has fallen by -78.03 points (-0.39%) and currently trades at 19,871.00
• China's A50 Index has risen by 35.43 points (0.26%) and currently trades at 13,463.14

 

UK and Europe:

• UK's FTSE 100 futures are currently up 17 points (0.23%), the cash market is currently estimated to open at 7,378.63
• Euro STOXX 50 futures are currently up 23 points (0.65%), the cash market is currently estimated to open at 3,584.92
• Germany's DAX futures are currently up 85 points (0.66%), the cash market is currently estimated to open at 13,046.14

 

US Futures:

• DJI futures are currently up 195 points (0.61%)
• S&P 500 futures are currently up 93.75 points (0.76%)
• Nasdaq 100 futures are currently up 26 points (0.65%)

 

 

Asian equity markets were mostly lower after weak PMI data form China prompted ANZ to lower its growth forecast to less than 3% in 2022. Although price action has seen a few whipsaws late in the session likely due to month-end flows

 

Futures markets for European and US indices are trading higher ahead of today’s open, although the moves are more likely to be repositioning as opposed to a bullish signal for equity markets as a whole. And the same could be said for AUD which is currently the strongest major overnight, whilst the US dollar was the weakest major as it corrected overnight.

 

Flash CPI data remains the key focus for euro traders today. Yesterday we saw that German CPI rose at the state and nationwide level, and Spain’s rose slightly following a contraction last month. Today we have inflation data from Italy ad the Eurozone. With talk of a 75bp hike warranted, any upside surprises today simply cements that view. The HIPC read for Europe is expected to rise by 0.1% m/m (0.1% previously), and to rise 9% y/y (8.9% previously). Core HCIP is expected to rise 0.4% m/m (-0.2% previously) and rise 4.1% y/y (4% previously).

 

Of course, with expectations for a more aggressive hike path comes the calls for a deeper recession. So high inflation data today could end up weighing on already fragile equity markets and further supporting the euro.

 

 

DAX 4-hour chart:

 

The DAX formed a bearish Pinbar on the daily chart yesterday and is trading higher ahead of the cash market open. We can see on the 4-hour chart that prices remain beneath a bearish trendline, with a small bearish hammer marking a swing high before closing back below the weekly pivot point. Given there are several resistance levels overhead – including the weekly/monthly pivot points, 61.8% Fibonacci ratio and 50-bar eMA – today’s bias remains bearish beneath yesterday’s high and for a move back towards the lows around 12,700.

 

 

 

FTSE 350 – Market Internals:

FTSE 350: 4080.77 (-0.88%) 30 August 2022

• 152 (43.43%) stocks advanced and 188 (53.71%) declined
• 5 stocks rose to a new 52-week high, 35 fell to new lows
• 26% of stocks closed above their 200-day average
• 48.57% of stocks closed above their 50-day average
• 4% of stocks closed above their 20-day average

 

Outperformers:

• + 8.75% - Baltic Classifieds Group PLC (BCG.L)
• + 4.10% - Currys PLC (CURY.L)
• + 3.83% - Aston Martin Lagonda Global Holdings PLC (AML.L)

 

Underperformers:

• ·-6.90% - Endeavour Mining PLC (EDV.L)
• ·-6.59% - Centrica PLC (CNA.L)
• ·-6.13% - Bunzl plc (BNZL.L)

 

 

Economic events up next (Times in BST)