Snapshot: The DAX is currently at 24265, down 68 points or -0.28%. Hawkish comments from ECB’s de Guindos in the Financial Times, suggesting the central bank remains cautious about easing too quickly, are weighing on the index. This counters earlier expectations of accelerated rate cuts following recent inflation data.
- Watch 24200; break opens path to 24100.
- Rising crude oil prices and ongoing US-Iran tensions amplify inflation concerns; potential for a risk-off move into the NY session.
Bias into NY: Expect continued pressure on the DAX, targeting a move toward 24200, if ECB concerns about inflation persist into the US open. The firmer US 10Y yield, currently at 4.393%, could further weigh on sentiment, especially if equities and bonds trade with positive correlation.