The latest China stimulus measures have significantly influenced global markets, especially the DAX and Hang Seng indices. While the Dow Jones has eased back after reaching record highs above 42,000, the DAX has surged thanks to renewed optimism from further stimulus actions in China.
In recent trading sessions, the Dow has dropped slightly after achieving a new high. The index held above 42,000 for two consecutive days, marking a remarkable achievement. Analysts suggest that a pullback to the late August high of 41,586 could serve as the first target if the index continues to decline. Below this level, the July high of 41,382 acts as another important support point. Furthermore, trendline support remains robust, providing a buffer against deeper declines.
Conversely, the DAX index has responded positively to reports of increased spending and stimulus from China. It has climbed to new heights, continuing its rebound from early September lows. To maintain this upward trend, the DAX must avoid closing below 18,700. A drop beneath this level could signal potential weakness and a shift in market sentiment.
Similarly, the Hang Seng index has witnessed significant gains, soaring to the 17,800 area due to anticipated China stimulus for the economy. The index has broken through crucial trendline resistance from January 2023, suggesting a bullish outlook. A close above the May highs would confirm a new higher high, yet caution is advised, as short-term weakness may emerge if it dips below 19,000.
Overall, while the Dow consolidates its gains, the positive impact of China stimulus on both the DAX and Hang Seng is evident. Investors should remain vigilant and closely monitor these developments as they unfold.
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