The DAX is still struggling to regain momentum
The DAX looks set to extend its softer tone at the open, with the market hovering around 24,150 and still lacking a convincing reason to re-accelerate higher. Some of the bullish arguments that carried equities through the previous rally are starting to look less compelling.
Energy prices remain elevated, and the rally in semiconductor stocks is beginning to look mature enough to invite profit-taking rather than fresh enthusiasm. That shift has already shown up more clearly in Asia, where some of the best-performing chip names have started to see investors take money off the table.
Inflation data is moving back to the top of the agenda
The key test later today will be the US inflation release, which could reinforce the market's concern that price pressures remain stubborn even as investors have grown more hopeful about the broader macro backdrop. That matters because hotter inflation would challenge the idea that central banks will soon have room to ease policy more confidently.
The ZEW index is also on the calendar in Europe, but the US CPI data is likely to dominate sentiment. As the reporting season begins to lose some of its intensity, macro releases are once again becoming the main force shaping intraday risk appetite.
Munich Re and Bayer add a corporate layer to an already busy session
Company results are still part of the picture, particularly in Frankfurt. Bayer's numbers were received relatively well, although the long-running glyphosate overhang continues to cast a shadow over the stock. Munich Re, by contrast, came in slightly below expectations and was weighing on the shares in pre-market trading.
