However, auto stocks had a mixed session on Monday. Mercedes-Benz Group And Volkswagen increased by 0.58% and 0.54% respectively. BMW rose 0.38%, while Porsche fell by 0.18%.
The German and Eurozone economies in the spotlight
On Tuesday (April 30), German retail sales, unemployment and GDP numbers for the first quarter of 2024 deserve investors' attention. Better-than-expected economic indicators could dampen investors' bets on multiple ECB rate cuts after June.
Economists expect retail sales to rise 1.5% in March after falling 1.9% in February. Furthermore, economists expect the unemployment rate to remain stable at 5.9% in April.
However, the GDP figures for the first quarter of 2024 could have a greater impact on the DAX values. Economists expect the German economy to grow 0.1% quarter-on-quarter after contracting 0.3% in the fourth quarter of 2023.
Later in the European session, GDP and inflation numbers for the Eurozone will also need to be taken into account.
Economists forecast that the euro zone economy will grow by 0.1% in the first quarter of 2024 compared to the previous quarter. In the fourth quarter of 2023, the economy came to a standstill. However, economists expect core annual inflation to fall to 2.6% from 2.9%. Weaker-than-expected figures could influence ECB interest rate developments and boost buyer demand for DAX stocks.
While the economic indicators will influence the ECB's interest rate path, corporate profits could have a greater influence on the DAX. Volkswagen, Vonovia, MTU Aero, Mercedes Benz Group, Lufthansa and Adidas are among the big names publishing their earnings figures.
Employment costs, consumer confidence and US corporate profits
Later in the session, US employment costs – wages and CB Consumer Confidence Index numbers will draw investors' attention. Better-than-expected numbers could impact investors' bets on a Fed rate hike in September.
Economists forecast that employment costs – wages will rise 0.9% in the first quarter of 2024 after rising 0.9% in the fourth quarter of 2023. In addition, economists expect the CB consumer confidence index to fall from 104.7 to 104.0 in April.
While US economic indicators attract investors' attention, corporate earnings will also be important.
Amazon.com (AMZN), Coca-Cola (COKE), McDonald's (MCD), PayPal (PYPL) and Starbucks (SBUX) are among the top names reporting their earnings results.
Short term outlook
The short-term development of the DAX will depend on German and US economic indicators as well as corporate profits. However, investors also need to consider Eurozone inflation numbers as investors consider ECB interest rate cuts beyond June.
On the futures markets, the DAX lost 17 points, while the Nasdaq Mini gained 8 points.
Technical indicators for the DAX
Daily chart
The DAX was above the 50-day and 200-day EMA, sending bullish price signals.
A return of the DAX to the 18,200 level could give the bulls a run to the 18,350 level.
Economic indicators from Germany, the Eurozone and the USA as well as corporate profits must be taken into account.
However, a DAX crash below 18,000 would bring the 50-day EMA into play. A break below the 50-day EMA could give bears a run towards the 17,615 support level.
The 14-day RSI of 54.35 suggests the DAX will return to the April 2 all-time high of 18,567 before entering overbought territory.
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