Snapshot: The DAX 40 has pared early gains to trade just below the 25,000 handle, consolidating as Eurozone and German HICP prints hit the ECB’s 2.0% target. While Goldman Sachs and Barclays raising their European equity targets provides structural support, today’s immediate momentum is capped by a 4% ex-dividend drop in Volkswagen and geopolitical headlines.
- Key Technical Pivot: Hold the 24,850 support zone; despite the temporary drag from the auto sector, demand for defense names like Rheinmetall (+1.6%) keeps the broader index structure constructive.
- NY Session Catalyst: Watch the 08:30 ET US macro prints, as yesterday’s 6 bp backup in the US 10-year yield to 4.49% and a 12.3% spike in the VIX to 18.44 threaten to trigger broader cross-asset de-risking if US data surprises to the upside.
Bias into NY: We are tactically constructive on the German Index targeting 25,100, as the clean 2.0% domestic inflation print secures the ECB easing runway, provided US yields do not spike further after the 08:30 ET data.