At the start of the new week, concerns about further increases in energy prices and the resulting drag on the economic recovery are overshadowing the positive leads from the United States and Asia. For the DAX, the immediate focus is therefore likely to remain on defending the 26,000-point mark. Half an hour before the opening bell, the index was trading slightly below that level.
Unlike many Asian indices, Germany’s benchmark has too little exposure to technology to benefit meaningfully from the renewed enthusiasm surrounding the semiconductor and AI sectors. Meanwhile, there are no signs of tensions easing in the Middle East or the Strait of Hormuz. Quite the opposite: Iran is attempting to establish a kind of demarcation zone around the strategically important shipping route. This is directly driving energy prices higher and pushing Brent crude towards $100 a barrel.
With Wall Street closed today for a public holiday, European investors are likely to remain cautious in the absence of fresh catalysts from across the Atlantic. From a technical perspective, the DAX is expected to trade within a range of 25,850 to 26,100 points today.
