Snapshot: The DAX 40 has cleared the 25,000 milestone, buoyed by supportive domestic pricing as the ECB’s Philip Lane prepares to outline a constructive euro area economic outlook with German HICP comfortably anchored at 2.0%. This local resilience is reinforced by a firm bid in Commerzbank after Berlin rejected UniCredit’s hostile takeover, alongside broader tailwinds from an easing geopolitical risk profile.
- The index is holding firmly above the critical 25,000 level, with bullish continuation expected ahead of Lane’s 13:10 London address and a domestic banking sector successfully defending its independence.
- The primary risk to this extension lies in the US 08:30 ET macro prints, where a potential hawkish repricing of US yields could pressure higher-valuation industrial components.
Bias into NY: We are structurally bullish into the NY open, targeting an extension toward 25,150, as solid Eurozone macro fundamentals and a collapsed VIX at 16.2 keep the path of least resistance pointed higher.