European indexes recover ground as investors focus on positive data releases
- European stocks broadly climbed on Tuesday, recovering from recent downside.
- German Factory Orders, pan-euro area YoY Retail Sales beat the street.
- Investors shrug off an accelerated decline in MoM Retail Sales.
European indexes rebounded on Tuesday, bolstered by market participants focusing on green prints in European economic figures and shrugging off a steeper near-term decline in European Retail Sales in December.
German Factory Orders climbed an unexpected 8.9% in December, well above the forecast flat hold at 0.0% after November saw a downside revision from 0.3%. Pan-euro area annualized Retail Sales also fell less than expected, contracting by -0.8% versus the forecast -0.9%. The previous period also saw a healthy upside revision from -1.1% to -0.4%.
Investors caught a rise in bids after better-than-expected earnings from energy sector stocks, and renewed discussions of support for equities from Chinese authorities helped to further bolster equities exposed to trade with China.
The pan-European STOXX600-major equity index climbed over 3 points, gaining 0.63% on Tuesday and ending at €486.76. London’s FTSE index gained 0.9% on the day, ending up 68 points at £7,681.00.
France’s CAC40 also climbed 49 points to edge up 0.65%, closing at €7,638.97 while Germany’s DAX index finished at a record €17,033.24 after climbing nearly 130 points to gain 0.76% on the day.
DAX technical outlook
The German DAX broke into a fresh all-time high on Tuesday, crossing the €17,000.00 major handle and etching in a new historical high close of €17,033.24.
The DAX has closed in the green for three straight months, and Monday’s acceleration into the topside cracked into record bids for the German index.
The DAX is now up over 4.3% from January’s swing low into €16,328.29 and over 16.5% from October’s bottom bids near €14,618.09.
DAX hourly chart
DAX daily chart
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.
