Apollo Economist: ECB Could Raise Rates in September

The news that the European Central Bank (ECB) may raise interest rates could reduce overall risk appetite and put pressure on stock markets. APO shares have already fallen 7.9% in the last 24 hours, with the RSI entering oversold territory at 21.6. The MACD is below the signal line and in negative territory, confirming weak momentum. As the price trades below both the 20-day and 50-day moving averages, the short-term downtrend may continue. However, oversold conditions suggest a potential technical correction.

The possibility of an ECB rate hike could provide support for the euro, but the current technical outlook is weak. The RSI is near the oversold zone at 43.6, the MACD is below the signal line, and the price is trading below both the 20-day and 50-day moving averages. While the news may trigger some short-term recovery, the technical structure points to downward pressure. Therefore, the bearish bias prevails in the near term.

News that the ECB may raise interest rates in September could increase tightening concerns in the markets. The DAX index is trading at 24,856, with the RSI at 57.8 in neutral territory, although the MACD remains negative and below the signal line. While the price is above the 20-day SMA (24,697), it is trading close to the 50-day SMA (24,787). The expectation of a rate hike could create selling pressure, particularly in interest-sensitive sectors, and may lead to a short-term pullback toward the 24,700-24,800 support zone.

News that the ECB could raise interest rates in September has increased tightening concerns in the markets, potentially putting pressure on the CAC index. Technically, while the RSI at 54.8 is in neutral territory, the MACD line is below the signal line and in negative territory, indicating short-term weakness. Although the price is trying to stay above the 20- and 50-day moving averages, the rate hike expectation could test these supports. The 0.38% decline in the last 24 hours suggests that the impact of the news has not yet been fully priced in. Therefore, a downward movement in the short term is highly likely.