Snapshot: The DAX is pushing higher, trading around 25,000, fuelled by easing inflationary pressures within the Eurozone. German HICP decelerated to 2.0% YoY, down from 2.6% previously, bolstering sentiment. Positive developments in US-Iran talks, potentially reopening the Strait of Hormuz, are adding to the risk-on mood.
- Watch for follow-through above 25,000, a key psychological level.
- Rising US real yields (10Y TIPS at 2.18%) pose a headwind if the trend continues, potentially drawing capital away from European equities.
Bias into NY: Bullish on the DAX, targeting a move towards 25,200, supported by receding Eurozone inflation and improving global risk appetite. The rally is contingent on US yields remaining contained, and the US data calendar before the NY close will be crucial.