European markets rise but DAX can't hold above key moving average

With European traders wrapping up their session, equity benchmarks across the region closed mostly in positive territory. Britain's FTSE 100 posted the strongest advance, with France's CAC also moving higher. Italy's FTSE MIB, however, snapped the pattern with a drop.

The day's closing levels were as follows:

• German DAX added 38.71 points (0.15%) to close at 25,298.62.

• France's CAC gained 45.48 points (0.58%) to finish at 7,873.12.

• UK's FTSE 100 rose 74.53 points (0.70%) to 10,724.87.

• Spain's IBEX climbed 20.02 points (0.10%) to 19,230.71.

• Italy's FTSE MIB dropped 303.32 points (0.61%) to 49,753.85.

For Germany's benchmark, buyers made a push. The DAX climbed above its 100-day moving average of 25,416, touching a peak close to 25,448. But the move lacked follow-through, and the index slipped back below that moving average.

Technically, breaching an important level marks just the initial move. The next phase — holding that level — is what grants buyers greater authority. That second phase failed to materialize on Friday. The 25,416–25,448 zone now stands as a barrier that must be cleared and defended. Until that happens, the failed breakout provides sellers with a reference point to sell against.

Yields on 10-year sovereign bonds across Europe were mixed:

• Germany's yield fell 0.4 basis points to 3.459%.

• France's yield rose 3.7 basis points to 4.873%.

• UK's yield declined 3.4 basis points to 5.420%.

• Spain's yield added 0.4 basis points to 4.094%.

• Italy's yield slipped 0.1 basis points to 4.562%.

U.S. equities continued to face selling pressure after a hotter-than-anticipated consumer price index reading. The Nasdaq and Russell 2000 posted the largest losses:

• The Dow fell 168.00 points (0.33%) to 51,507.16.

• The S&P 500 dropped 88.20 points (1.13%) to 7,717.25.

• The Nasdaq Composite lost 460.56 points (1.69%) to 26,743.82.

• The Russell 2000 declined 53.54 points (1.92%) to 2,729.83.

• The Nasdaq 100 slid 569.35 points (1.86%) to 30,000.13.

Treasury yields climbed, with the most pronounced gains at the short end:

• The two-year note added 4.9 basis points to 4.842%.

• The five-year yield rose 3.4 basis points to 5.041%.

• The ten-year yield increased 1.9 basis points to 5.236%.

• The thirty-year bond advanced 0.4 basis points to 5.560%.

The bond yield advance adds to the downward force on equities. It also gives market participants more to digest on inflation and the path for Federal Reserve policy.

Elsewhere, crude oil posted gains, while precious metals and bitcoin moved lower:

• WTI crude rose $1.32 (1.40%) to $95.46.

• Spot gold dropped $82.14 (1.97%) to $4,078.64.

• Silver fell $3.55 (6.00%) to $55.63.

• Copper declined 0.98% to $6.66.

• Bitcoin slipped $1,465 (1.76%) to $81,629.

European equities outperformed U.S. stocks on the session. Nevertheless, the DAX's inability to sustain a break above its 100-day moving average highlights that buyers still need to prove themselves. They probed the upper boundary but couldn't maintain the breakout.