The DAX is back testing the 24,000 mark
The DAX remains under pressure and is facing another test of the 24,000 level today. The main backdrop is a busier earnings calendar, which is now giving investors a broader read on both sector-level momentum and the wider economic picture.
Nestle, Roche and STMicroelectronics have already reported, while Tesla released its quarterly numbers yesterday. Together, those updates are helping investors assess how demand and margins are evolving across major industries.
Tesla helped sentiment, but SAP remains the key local focus
Tesla's numbers were received broadly positively, but German investors are still treading carefully ahead of SAP's results after the US close. Market attention is focused on the company's cloud business and on whether its artificial intelligence strategy is starting to translate into more convincing growth.
That caution matters for the DAX because SAP is such a heavyweight within the index. The stock's continued downtrend is adding to the drag on the broader market, even as the wider earnings season starts to gather pace.
Higher Brent crude prices are keeping Europe on edge
The situation in the Middle East has not improved materially, and that is still feeding through into higher energy prices. For European equity markets in particular, rising Brent crude remains an important headwind because it revives inflation concerns at a time when growth expectations are still fragile.