DAX pauses after rally as peace hopes meet reality, Brent dips below $100 and US jobs report looms

Published: Thursday, 7 May 2026 at 11:30 (UK)

After yesterday's sharp burst higher, the DAX made a quieter start to Thursday's session, with the index opening just below 25,000.

Asian trading was also driven by hopes of an imminent peace breakthrough in the Middle East. Japan's Nikkei rose by more than 5% at one stage, while other regional equity markets also finished higher. Even so, there are still plenty of question marks, with the US and Iran continuing to fire off updates across official social media channels and effectively resetting the status quo almost by the hour.

That cautious optimism is also visible in oil. Prices retreated sharply yesterday, but international oil benchmark Brent crude is still hovering around the $100-a-barrel mark. In other words, the market is not yet pricing out the full risk premium because uncertainty remains.

Against that backdrop, the DAX may still struggle to sustain a move above 25,000. An initial attempt yesterday already faded. For now, the index is unlikely to develop much of a path of its own and instead remains tethered to Wall Street, which looks a little overextended after the recent rally and vulnerable to a correction. If that happens, the DAX could come under heavier pressure and any push towards a fresh record high may have to wait.

German factory orders did rise by 5%, comfortably ahead of expectations for a 1% increase, but the data do not yet fully capture the latest market developments. Earnings season also continues today, although the focus is more on second-tier corporate releases.

On the macro front, investors are waiting for the next batch of US labour-market data later today (Thursday 7 May) and tomorrow, after the latest JOLTS and ADP releases pointed to some signs of softening. Construction spending and unit labour costs are also likely to attract attention. From a technical perspective, the DAX could trade in a range between 24,800 and 25,150 today.