European indexes close broadly lower on Tuesday, DAX recovers but still lower

European equities declined on Tuesday amidst a thin economic calendar.
UK BRC Retail Sales fell further, fueling risk-off investor sentiment.
European Unemployment Rate ticks down to 6.4%.

Joshua Gibson FXStreet

European equity indexes declined on Tuesday, paring back some losses at the midpoint of the day’s trading sessions but still ending the day broadly lower as market sentiment coils with investors awaiting meaningful data.

The Eurozone’s Unemployment Rate ticked slightly lower from 6.5% to 6.4% in November, but the overall employment picture in Europe sees businesses struggling to fill positions and a general mismatch in labor skills plaguing productivity across the continent.

Tuesday also saw the UK’s BRC Like-For-Like Retail Sales for the year ended December, which declined from 2.6% to 1.9% compared to the previous month’s YoY result as UK consumers grapple with still-high inflation eating away at their spending power.

ECB's Villeroy: ECB to cut rates in 2024

Banque de France (BoF) Governor and member of the European Central Bank’s (ECB) Governing Council François Villeroy de Galhau delivered hawkish remarks after the market close to investors, noting that the ECB is well on its way to begin cutting rates in 2024. European shareholders will have to wait until Wednesday’s market open to bid on stocks following Villeroy’s statements.

The German DAX fell 0.17%, sliding 28 points to close at €16,688.36, while France’s CAC 40 Index shed a third of a percent to close at €7,426.62, down 23.62 points. The UK’s FTSE 100 index shed a little over one-tenth of one percent, falling 10.23 points to £7,683.96.

The pan-European STOXX600 index fell 0.92 points to close at €477.26, down a fifth of a percent on Tuesday.

DAX Technical Outlook

The DAX fumbled on Tuesday, paring back Monday’s gains to fall into the €16,6090 neighborhood before moderating in the last half of the trading day.

The German equity index is still down from 2024’s opening bids, and intraday action is getting snarled on the 200-hour Simple Moving Average (SMA).

The Dax snapped a three-day win streak on Tuesday, keeping the index trapped inside a congestion pattern just below December’s recent highs just shy of the €17,000 major handle.

DAX Hourly Chart

DAX Daily Chart

DAX Technical Levels

DAX

Overview
Today last price	16665.63
Today Daily Change	-30.53
Today Daily Change %	-0.18
Today daily open	16696.16

Trends
Daily SMA20	16691.55
Daily SMA50	16081.54
Daily SMA100	15761.28
Daily SMA200	15838.02

Levels
Previous Daily High	16733.16
Previous Daily Low	16501.46
Previous Weekly High	16945.4
Previous Weekly Low	16434.4
Previous Monthly High	16984.44
Previous Monthly Low	16229.16
Daily Fibonacci 38.2%	16644.65
Daily Fibonacci 61.8%	16589.97
Daily Pivot Point S1	16554.03
Daily Pivot Point S2	16411.89
Daily Pivot Point S3	16322.33
Daily Pivot Point R1	16785.73
Daily Pivot Point R2	16875.29
Daily Pivot Point R3	17017.43

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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