Snapshot: The DAX 40 has surged past the 25,000 milestone, supported by ECB Chief Economist Philip Lane’s constructive economic outlook and Eurozone inflation settled at 2.0%. German domestic equity appetite remains highly resilient, with the upward momentum amplified by easing geopolitical risk ahead of the Friday Strait of Hormuz reopening and a soft VIX at 16.2.
- A decisive daily close above 25,000 confirms a structural breakout, led by a 5% surge in GEA Group and solid demand for domestic heavyweights Siemens and Rheinmetall.
- US macro prints at 08:30 ET present the main tactical risk, where any upside surprise could push the US 10-year yield past 4.50% and temporarily choke off global equity momentum.
Bias into NY: We hold a bullish bias targeting 25,150, as the ECB’s comfort with stable inflation keeps the domestic discount rate predictable. This local support should easily absorb any minor Treasury-led volatility during the New York afternoon session.