Snapshot: The DAX is trading around 24,550, fractionally higher on the day, struggling to extend gains after German HICP inflation eased to 2.0% YoY. The lower inflation print reduces pressure on the ECB to maintain its hawkish stance. Today’s catalyst will be US data at 08:30 ET.
- A break above 24,600 would open the path towards prior highs.
- Rising US real yields present a headwind, potentially pressuring the DAX if risk sentiment sours during the NY session.
Bias into NY: Neutral. While the softer German inflation provides a modest tailwind, rising US yields and uncertainty surrounding the US-Iran situation will likely limit upside. We expect choppy trading between 24,450 and 24,600.