Rising commodity prices are becoming a fresh drag on sentiment
US equities stabilised thanks to firmer technology shares, and the DAX managed to defend the 24,000 level during the session. But the broader tone remains fragile because commodity prices are climbing again. Oil is moving higher, copper has pushed to fresh records, and the demand story is increasingly being driven by technology-related investment rather than a cleaner global growth backdrop.
Europe is more exposed to the inflation risk than the US
That matters because higher raw-material costs are reviving inflation concerns not only for the US, but especially for Europe. In the source view, Europe is currently more vulnerable to rising commodity prices than it is able to benefit from them. The US can offset part of the pressure through stronger export activity in energy and industrial metals, but Europe has fewer such buffers, which makes the inflation transmission more painful for regional equities.
Thin volumes and stock-specific earnings moves are driving the DAX
Trading volumes in the DAX remain light despite the geopolitical backdrop and the ongoing reporting season, which suggests investors are still reluctant to take strong directional bets. Much of the movement is being driven by individual earnings reactions instead. Merck surged sharply, while Eon, Deutsche Telekom and Allianz were also well received. Semiconductor stocks continued to attract buyers, helping Infineon move to the top of the index. By contrast, Rheinmetall remained under pressure as investors looked beyond the defence trade for stronger growth opportunities, while eurozone industrial production and GDP data came in slightly below expectations.
