DAX remains under pressure as oil prices rise and China growth weakens

The DAX is starting the week on the back foot as renewed Middle East tensions lift oil prices and keep investors cautious. Weak Chinese industrial and retail data are adding to fears that global growth is losing momentum just as energy costs rise again.

Andreas Lipkow - Headshot (600x600)
written by
Andreas Lipkow

Chief Market Analyst

Middle East tensions are putting fresh pressure on European risk sentiment

The DAX is set to open below the 23,800 level after another uneasy weekend in the Middle East. Investors are still dealing with an unstable geopolitical backdrop, and the lack of any visible de-escalation is keeping risk appetite fragile across European equities.

The immediate market channel is oil. Fresh military incidents around the Strait of Hormuz and Abu Dhabi have pushed crude prices higher again, which is adding another inflationary strain just as equity investors were hoping for a calmer start to the week.

Weak Chinese data are reinforcing the global slowdown story

The growth backdrop has also deteriorated. In Asia, technology shares remained under pressure and investors kept taking profits across several sectors, while the latest Chinese macro data missed expectations. Industrial production rose only 4.1%, well below the expected 6%, and retail sales increased just 0.2% against a 2% consensus forecast.

That combination strengthens the view that the world economy is losing momentum. Supply-chain disruption and higher energy costs are increasingly feeding into a broader stagnation narrative, which is especially uncomfortable for a DAX already exposed to cyclical and export-driven sectors.

Nvidia earnings are the main event in an otherwise thin week

There are few obvious macro catalysts on the calendar this week, which means stock-specific risk may matter even more than usual. The biggest scheduled event is Nvidia's earnings release after the New York close on Wednesday, which could inject fresh volatility into technology sentiment and spill back into Europe.

For now, the DAX may remain trapped in a broad range between 23,600 and 24,050 points. That leaves the index vulnerable to any additional shock from oil, geopolitics or a renewed deterioration in global growth expectations.

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DAX lacks momentum as commodity prices revive inflation fears

DAX lacks momentum as commodity prices revive inflation fears

The DAX is struggling to build momentum as rising oil and copper prices revive inflation concerns across Europe. Thin trading volumes and mixed earnings reactions are leaving investors cautious while the index clings to the 24,000 level.

The semiconductor rally has reached extremely overbought levels

The semiconductor rally has reached extremely overbought levels

The VanEck Semiconductor ETF has surged more than 50% since late March, but the move is now looking stretched. With SMH trading above its upper Bollinger band and RSI pushing beyond 80, the rally may be nearing a phase of consolidation or a sharper pullback.

US CPI and the STEO could drive fresh energy-market volatility

US CPI and the STEO could drive fresh energy-market volatility

US CPI and the EIA's Short-Term Energy Outlook may become the day's key macro catalysts as traders watch Brent, natural gas and gasoline for signs of renewed inflation pressure and sharper cross-asset volatility.

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