Snapshot: The DAX is currently trading around 24,000, down 1% following reports of escalating tensions in the Middle East and renewed tariff threats from the US. Focus remains on ECB speakers throughout the morning, including de Guindos’ presentation to the European Parliament.
- Watch for follow-through from this morning’s risk-off move, particularly with IFO Business Climate / ZEW Expectations due.
- Escalation of US-EU trade tensions poses a significant risk, particularly for German autos, already under pressure.
Bias into NY: Downside pressure likely to persist into the NY session, targeting a retest of 23,800. Broad risk-off sentiment is weighing on the DAX, amplified by the renewed trade war concerns; US yields are also a factor.