DAX Hits 21,948; NFP & Fed Report in Focus

Market Summary - February 7, 2025

China Stocks Rise, Bucking Regional Trend

• Despite U.S. 10% tariffs on Chinese goods, China’s AI sector remains resilient, boosting investor confidence.
• Shanghai Composite +0.8%, CSI 300 +1%, Hang Seng +0.9%.
• Top Performers: Lenovo (+7.5%), Xiaomi (+4.8%).
• Most regional markets declined due to global uncertainty around Trump’s policies.
• Australia’s S&P/ASX 200 +0.4%.

Europe – Germany

• Exports: +2.9% in December (forecast: -0.6%), with EU exports up 5.9%, non-EU exports down 0.5%.
• Imports: +2.1% MoM.
• Trade Surplus: €20.7B (vs. €19.2B in November).
• Industrial Production: -2.4% (forecast: -0.6%).
• Industrial Orders: +6.9% MoM due to large-scale orders (e.g., aircraft, ships, trains, military vehicles).

Germany 40 (DAX) – Technical Analysis – 4H

The Germany 40 (DAX) CFD on the 4-hour chart continues its strong bullish momentum, reaching a new high at 21,948. The price continues to be above the short-term moving averages, with the 20 EMA providing dynamic support.

The RSI is approaching overbought levels, which could indicate exhaustion and potential resistance or a short-term pullback. The Stochastic RSI is also above the upper boundary, signaling potential exhaustion in buying pressure. While this does not necessarily indicate an immediate reversal however traders should watch for signs of consolidation or a minor retracement from these levels.

If the price sustains above 21,900, the uptrend could extend further, with the next psychological resistance potentially around 22,000. On the downside, key support levels include the EMA 50 around 21,600 and consequently the lower of the previous consolidation around 21,400. A break below these levels could lead to a deeper correction towards 21,100.

Japan – Yen Strengthens

• Yen surged due to safe-haven demand and BoJ rate hike expectations.
• Hit 150.96 per dollar, strongest since December 10; now slightly weaker at 151.71.
• Weekly gain: Over 2%, strongest since November.

Corporate News

• BYD: +4.8%; unveiling vehicle intelligence strategy on Feb 10, boosting investor sentiment.
• Sold 4.3M vehicles in 2024, surpassing Tesla (1.8M), but still behind in EV sales.
• China’s subsidy program supports retail spending, benefiting Xiaomi, Lenovo, BYD, and Geely.
• Nissan & Foxconn:
• Merger talks stalled due to valuation & production differences.
• Nissan exploring partnerships beyond automotive, including tech firms.
• Foxconn may renew interest in Nissan, especially in EVs.

Commodities & Crypto

• Bitcoin: $96.7K, down 3% this week, down 4% last week.
• Gold: Extends gains for the 6th straight week.
• Oil: Down for the 3rd consecutive week.

Key Events Today (All times in UTC)

• 14:30 USD:
• Average Hourly Earnings (Jan): Expected +0.3% (Prev: +0.3%).
• Nonfarm Payrolls (Jan): Expected 169K (Prev: 256K).
• Unemployment Rate (Jan): Expected 4.1% (Prev: 4.1%).
• 16:00 USD: Fed Monetary Policy Report.

Upcoming Earnings

• Monday: McDonald’s Earnings Report.