Snapshot: The DAX 40 has cleared the psychological 25,000 milestone, underpinned by the ECB’s latest wage tracker confirming stable wage pressures and cementing Germany’s HICP at the 2.0% target. This domestic disinflation narrative has been amplified by a -4.48% plunge in WTI crude to $84.65 following the US-Iran interim shipping agreement, offering immense relief to energy-sensitive heavy industrials like Siemens and tech leaders like Infineon, which surged over 4%.
- Key Level: Structural support now rests at 24,900; the index’s sixth successive session of gains is fundamentally validated by domestic inflation cooling to 2% (down from 2.6% prior) and stable negotiated wages.
- NY Session Risk: Watch the impending US 08:30 ET data releases; any hot print will embolden Fed Chair Warsh’s hawkish stance, potentially pushing the US 10-year yield back above 4.43% and triggering late-session profit-taking.
Bias into NY: We maintain a constructive bias targeting 25,150, as the structural tailwind of anchored Eurozone wage pressures and collapsed energy input costs insulates the German index from hawkish Fed repricing.