DAX extends losses as selling pressure in technology stocks persists
The DAX remains under pressure as technology and semiconductor stocks sell off, with investors balancing Middle East risk, higher oil prices, resilient US data and the prospect of tighter monetary policy.
Chief Market Analyst
Technology selling keeps pressure on equities
The sell-off in equity markets continues, with technology stocks, and semiconductor names in particular, remaining under sustained pressure. Investors are increasingly confronted with a difficult combination of geopolitical uncertainty surrounding the escalating conflict with Iran and the prospect of higher interest rates, prompting a further reduction in equity exposure.
A still-resilient US economy, coupled with the inflationary risks arising from higher oil prices, could force central banks to adopt a more restrictive monetary policy stance sooner than markets had previously anticipated. This growing uncertainty has created an increasingly fragile backdrop for global equities.
Semiconductor valuations remain vulnerable
Given the elevated valuations across the semiconductor sector, investor sentiment has become particularly sensitive. At the same time, the ongoing US earnings season continues to present downside risks.
Even strong results from technology companies are increasingly proving insufficient to satisfy lofty market expectations, often triggering follow-on selling across the sector. In the seasonally thin summer trading environment, this has amplified downside momentum.
US macro data moves into focus
Today's session will once again be driven by a combination of corporate earnings and key US macroeconomic releases. Investors will closely monitor housing starts and industrial production, particularly after recent housing market data pointed to growing strains within the US real estate sector.
Those releases may matter for more than just the growth outlook. If the data continue to show resilience while energy prices remain elevated, investors may have to reassess how quickly central banks can shift towards easier policy.
DAX range shifts lower
From a technical perspective, the DAX is expected to trade within a range of 24,500 to 24,850 points, as investors continue to assess the balance between resilient economic fundamentals, geopolitical risks and mounting concerns over technology valuations.
A sustained break below that range would risk extending the current loss of momentum, while a recovery back above the upper end would be needed to suggest that selling pressure is starting to ease.
DAX still searching for direction as US economy remains resilient
The DAX remains trapped around the 25,000-point level as semiconductor profit-taking, Middle East uncertainty and a still-resilient US economy keep investors cautious ahead of another busy US data calendar.
DAX oscillates around 25,000 as US earnings season gets underway
The DAX remains anchored around the 25,000-point level as Middle East risks, higher Brent crude prices and the start of US earnings season shape sentiment. Investors are also watching US inflation data, Federal Reserve testimony and Wednesday's Beige Book.
Brent oil extends rebound after holding key support
Brent crude has rebounded sharply from support around $70.50 and moved into the mid-$80s as geopolitical risk returns to energy markets. Momentum indicators have improved, but the market now needs to hold above the former $82.50 resistance area to keep the bullish setup intact.