Snapshot: The DAX is trading at 25298, up 0.80% on the day, buoyed by the recent German HICP print of 2%, a significant drop from the previous 2.6%. This suggests easing inflationary pressures, potentially giving the ECB room to consider future rate cuts.
- Watch for further upside momentum if the index breaks above the intraday high of 25301.
- Geopolitical tensions, particularly in the Middle East, remain a risk factor and could trigger a risk-off move.
Bias into NY: We are cautiously bullish on the DAX into the NY session, driven by the positive inflation data and a relatively stable Bund yield environment; further gains could be capped if the DXY continues its advance above 99.06.