DAX eyes record high
After narrowly missing a fresh all-time high before the weekend, the DAX looks set to make another attempt today, supported by positive leads from Wall Street.
Should the index break above its previous record, the next psychological milestone could quickly come into focus.
Lower oil prices support sentiment
Once again, the main catalyst is the geopolitical backdrop. The United States has confirmed that negotiations with Iran are back on track, helping to push oil prices sharply lower.
The renewed decline in energy prices has eased inflation concerns and improved overall market sentiment, providing fresh support for equities.
Asian markets present a mixed picture
Asian markets, however, presented a more mixed picture. Ongoing profit-taking in technology stocks weighed heavily on both Japan's Nikkei 225 and South Korea's Kospi, each posting notable losses.
In Japan, sentiment was further dampened by the impact of a coordinated currency intervention by the Bank of Japan and the Federal Reserve, which helped strengthen the yen to around JPY 156 per US dollar. According to market reports, this marked the first joint intervention by the two central banks in fifteen years. The stronger yen subsequently weighed on Japan's export-oriented companies.
China stays in expansion territory
Chinese equities proved more resilient, remaining in positive territory despite manufacturing PMI data coming in below expectations.
Encouragingly, the index remained in expansion territory at 50.9, suggesting that economic activity continues to grow, albeit at a more moderate pace.
PMIs and Palantir earnings in focus
Today's trading session in Europe will be dominated by a broad range of Purchasing Managers' Indices (PMIs), offering investors a comprehensive snapshot of economic conditions across the Eurozone and the United States.
In Germany, retail sales have already disappointed, falling 1.1% month-on-month compared with expectations for a 0.4% decline. After the US market closes, attention will turn to Palantir, whose quarterly earnings could once again influence sentiment across the technology sector.
DAX expected to trade between 25,750 and 26,000
From a technical perspective, the DAX is expected to trade within a range of 25,750 to 26,000 points during today's session.
