Snapshot: The DAX 40 is drifting lower near the 24,800 level, pausing its recent four-day rally as a sharp domestic auto-sector selloff offsets supportive policy signals. While today’s ECB wage tracker confirmed stable negotiated wage pressures for 2026 to keep the disinflation narrative intact, a 7% plunge in BMW shares following a profit warning has dragged down German industrial heavyweights. Traders are now parsing ECB President Lagarde’s remarks from her 12:50 CET speech for further policy guidance.
- BMW’s guidance cut has triggered a broader 1.8% to 3% slide across Mercedes-Benz, Volkswagen, and Porsche, threatening to break the index’s near-term technical support.
- Global risk appetite remains highly sensitive to US treasury yields ahead of the NY session, with the 10-year yield hovering at 4.47% and the VIX steady at 16.2.
Bias into NY: We maintain a tactically bearish bias targeting a test of 24,700, as the systemic auto-sector downgrade and China market anxieties outweigh the tailwind of stable Eurozone HICP at 2%. Global equity flows are likely to remain defensive until the NY rate outlook clears.