Germany 40

In Europe, concerns about US tariffs, a struggling Eurozone economy and political uncertainty in France and Germany are continuing to hold back risk assets. France's CAC index is now nearly 6% lower on the year. The DAX forecast is also far from bullish, with a key drag being the European auto sector’s reaction to potential tariff threats.

This week’s US inflation data may impact Wall Street but will likely have limited implications for European indices. But one factor that is certainly weight on sentiment on this side of the pond is political uncertainty in Germany. Against this backdrop, our DAX forecast is turning bearish in the short term, especially if the German index now breaks a key support area that it was testing at the time of writing.

The DAX was trading slightly lower, down for the third consecutive day, although it was only around 1.5% off from the recently achieved record high. Far from a turmoil, in other words. But equally, the loss of bullish momentum may be a sign that the markets could go in reverse soon.

Today’s German wholesale inflation data pointed to further ECB rate cuts in December, keeping the bullish DAX forecast intact – for now, anyway. However, ongoing weakness in the Eurozone economy, coupled with political uncertainty in the US – with the presidential election now only two weeks away – and not to mention the fact China’s markets don’t seem to be finding a sustainable recovery despite ongoing government stimulus efforts, all point to a potential dop in the coming weeks.

DAX drops to test key technical support area as Wall Street is spooked by latest inflation data, further raising doubts over Fed's ability to cut rates. Earnings from Microsoft and Alphabet to come after the bell.

Earnings have helped to lift the mood so far in today's session, but risk appetite could be limited amid ongoing geopolitical risks and uncertainty over interest rates outlook. DAX technical analysis shows the German index is still residing in a bearish channel, despite the bounce.

German DAX index makes a sluggish start to Q2 after a sharp 5-month rally amid profit-taking, as correction risks linger. DAX technical analysis suggests more evidence is needed to confirm at least a short-term high has been hit.

What has driven the German index to record highs and can the rally persist? US investors are back, with Nvidia earnings coming into focus this week. DAX technical analysis shows index is testing key support.

At the time of writing in mid-morning European trade, the German DAX was off its earlier lows, but still lower on the session in what has so far been a mixed day for European markets. But with the euro and pound weakening again, it is obvious investors continue to remain concerned over the growing threat of stagflation in Europe.

The German stock market has a huge range of popular and well-known brands listed on it – including Adidas, BMW and Siemens. Learn about the exchanges, companies and indices that make up the German stock market.

The risk off tone continued in the first half of today’s session. The major global indices hit fresh weekly lows, reaching their lowest levels in several weeks, causing the VIX – the fear index – to rise to its highest level since May.

Thanks to weakening Chinese manufacturing data, we have seen fresh falls in crude oil and some base metals, hurting energy stocks and miners. Our short-term DAX outlook is therefore bearish given growing worries over the health of the world's second largest economy.

There were some downside surprises with French and UK services, and German manufacturing, all disappointing expectations

Sentiment boosted because of warmer-than-expected weather which has reduced fears about gas shortages.

Stocks jump as coronavirus cases and deaths slow in mainland Europe

Dax to test 10150 as sentiment continues to improve?

After two straight sessions of gains European markets are heading lower on Thursday as data turns ugly.