⬆European equities rose sharply after fresh inflation data from Germany
European indices launched today's session in upbeat moods, with the pan-European STOXX 600 climbing to a fresh nine-month high, while German DAX jumped to highest levels since February 2022 as latest data showed German inflation rose slightly to 8.7% in January but remained below analysts’ projections of 8.9%, which sparked hopes that ECB may ease its hawkish rhetoric. It also seems that European investors digested the latest hawkish remarks from Fed policymakers who reaffirmed their commitment to fighting inflation with more rate hikes. From a technical point of view, DE30 broke above the recent high at 15585 pts which theoretically paves a way towards all-time high at 16330 pts. However bearish divergence appeared on the Momentum indicator, which indicates that the recent upward rally may be losing steam. If sellers manage to regain control, downward impulse may be launched towards 14730 pts, which is marked with lower limit of the 1:1 structure and 23.6% Fibonacci retracement of the last upward wave.
DE30, D1 interval. Source: xStation5
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