DAX consolidates above 26,000 as German economic recovery gains momentum

DAX consolidates above 26,000

Following its decisive break above the 26,000-point mark, the DAX is consolidating the gains recorded at the start of the week and is expected to open modestly higher.

It would not be unusual for the index to retest this important psychological level during today's session before attempting to extend its recent record-breaking advance.

Earnings season keeps investors selective

The earnings season continues at full pace in Germany, with Siemens, Deutsche Telekom, and Commerzbank reporting quarterly results today.

Across the Atlantic, investors are also digesting fresh corporate updates from eBay, Etsy, and MercadoLibre, providing further insights into consumer spending trends and the resilience of the digital economy.

Semiconductor earnings weigh on Asian technology shares

Within the semiconductor sector, earnings from SanDisk and Western Digital disappointed investors, triggering selling pressure in both stocks and weighing on technology shares across Asian markets.

The mixed earnings picture continues to reinforce investors' increasingly selective approach towards semiconductor companies following this year's strong AI-driven rally.

German industrial orders beat expectations

On the macroeconomic front, Germany delivered another encouraging signal. Industrial orders rose by 3.1%, significantly outperforming market expectations of 0.5%.

The stronger-than-expected reading adds to the growing body of evidence suggesting that the German economy is gaining momentum and that the long-awaited recovery is becoming increasingly broad-based.

US data in focus

Later today, investors will focus on key US economic releases, including initial jobless claims and wholesale inventories, both of which could provide fresh clues about the strength of the US economy and the Federal Reserve's policy outlook.