The 25,000 level remains the key battleground
The 25,000-point level remains the key battleground for the DAX as trading gets underway today. Investors continue to watch developments in the Middle East with increasing scepticism, while hopes for a near-term resolution to the conflict continue to fade.
The latest reports that the United States is considering imposing a 20% levy on cargo transiting the Strait of Hormuz have added further upward pressure to Brent crude and broader oil prices. As a result, the strait is increasingly being viewed as a major geopolitical bottleneck for global trade. Assessing the potential impact of these developments on the global economy has become increasingly difficult.
Asian markets remain under pressure
Asian equity markets have already reacted with another round of declines. Chinese markets were the notable exception, managing to outperform following slightly better-than-expected trade data.
In particular, robust exports of AI-related technologies provided support for equities on the mainland, helping Chinese benchmarks distance themselves from the broader risk-off tone across the region.
US earnings and Fed signals move into focus
Today's trading session is expected to be eventful. Five major US banks are due to kick off the US earnings season with their quarterly results, giving investors an early read on credit conditions, investment-banking activity and the health of the broader US economy.
