Snapshot: The DAX 40 has drifted lower to the 24,800 mark, snapping a four-day winning streak as domestic auto sector warnings overshadow benign wage data. While the ECB’s latest wage tracker indicates stable negotiated wage pressures for 2026, the index is pinned down by BMW’s profit warning, which has dragged down major peers Volkswagen and Mercedes-Benz. Traders are currently assessing the fallout from Lagarde’s 12:50 CET address before the NY crossover.
- Domestic Signal: Although Eurozone HICP at 2% and stable wage indicators support the ECB’s easing path, the near-term technical setup for German equities is damaged, leaving the 24,720 support level highly vulnerable.
- NY Watch-Item: Risk appetite spillover ahead of comments from new Fed Chair Kevin Warsh, where any upward pressure on the US 10-year yield from its current 4.47% level could compound European equity weakness.
Bias into NY: We lean tactically short targeting 24,680, as the idiosyncratic drag from German industrial heavyweights overrides the supportive domestic inflation backdrop, a vulnerability amplified by tight global financial conditions.