Fed Cuts Rates as DAX Consolidates Above 24,000

Market Moves

• Wall Street gains: Dow +1.05%, S&P 500 +0.67%, Nasdaq +0.33% on Fed’s labor focus.
• Industrials lead: GE Vernova +15.6% on strong AI-linked infrastructure outlook.
• Oracle disappoints: After-hours -11% on weak revenue/profit outlook → tech sentiment hit.
• Global futures soften: Oracle miss erases Fed-driven optimism; Europe tech pressured; Bitcoin -2%.
• Japan: Nikkei -1% as SoftBank -8%, concerns over Stargate data-center project; tech and banks retreat.

AI & Labor Market

• Stanford study:
  • Jobs for 22–25-year-olds in AI-exposed roles down ~6% since late 2022.
  • Older workers in same roles up 6–9%.
• Impact concentrated in automatable tasks; supportive roles see job growth.

Germany – DAX – Technical Analysis 1 D Chart

Germany 40 is currently trading at 24,127 after a minor pullback from the intraday high near 24,220, following a strong bullish run that broke above the 23,740 pivot level. Price remains within the broader consolidation range of 22,900 to 24,884, but the recent advance positions the index near the upper half of this structure. The short-term trend is bullish, supported by higher lows since late November, yet the inability to break above 24,220 decisively introduces near-term resistance. A sustained close above 24,220 would open the path toward 24,400 and the major resistance at 24,884, while failure to hold above 24,000 could trigger a retracement toward 23,740, which now acts as key support.

Momentum indicators remain constructive. MACD is positive and widening, confirming bullish momentum, while RSI at 58.40 is trending higher but still below overbought levels, leaving room for further upside. ATR at 284.4 shows volatility has moderated slightly compared to prior sessions, suggesting controlled price movement within the bullish leg. Technical bias favors continuation toward 24,400–24,884 if price clears 24,220; otherwise, consolidation or a pullback toward 24,000 and 23,740 is likely before the next directional move.

China

• Exports +5.9% YoY in November, beating forecasts; EU and Australia shipments strong, US reliance down.
• Politburo signals consumption stimulus ahead of CEWC.
• MSCI China: earnings +10.9% next 12 months; forward P/E 12.9.
• Sectors benefiting: telecom, communication services, financials (~50% of index).

Policy & Regulation

• Australia bans social media for under-16s; platforms must implement age verification or face $32M fines.
• Other countries (Denmark, Malaysia, Norway) monitoring for possible adoption.

--Written by Philip Papageorgiou – Market Analyst
-Follow me on  X ex Twitter: PhilipForexCom