Snapshot: The DAX is trading near 24,400, extending yesterday’s rebound, driven by the ECB’s decision to hold rates steady and keep options open for future meetings. The positive close for April, which saw a 7.1% monthly gain, is also supporting sentiment. Focus shifts to the US session open and upcoming data releases.
- A break above 24,500 would open the door for a test of recent highs.
- Rising US real yields, currently at 1.96%, present a headwind if they continue to climb, potentially triggering a risk-off move.
Bias into NY: Cautiously bullish on the DAX as the ECB’s slightly less hawkish stance provides near-term support, targeting a move towards 24,600; however, keep a close eye on US yields and the VIX, which could quickly reverse the positive sentiment.