Snapshot: The DAX is poised to close out the week with a 3.5% gain, currently trading around 24,800. The recent drop in Eurozone HICP to 2% is fueling hopes that the ECB may consider easing its monetary policy stance sooner than anticipated. Focus remains on geopolitical tensions and upcoming US data releases.
- Watch for a break above 24,850 to confirm the bullish momentum.
- Risk of profit-taking into the weekend and any escalation in US-Iran tensions could trigger a pullback.
Bias into NY: We see a slightly bullish bias into the NY session, supported by the positive sentiment stemming from the cooling Eurozone inflation and hopes for de-escalation between the US and Iran. Continued tech strength could push the DAX towards 24,900 if risk sentiment holds.