The DAX is trying to regain its footing above 25,000
After briefly slipping back below 25,000, the DAX is attempting to stabilise above that level again. The setback came after another burst of uncertainty around negotiations between the United States and Iran, which pushed oil prices higher and revived worries that energy could feed back into inflation expectations.
That move did not last long, but it was enough to remind traders how fragile sentiment can become when geopolitical headlines hit at the same time as equity markets are trading near stretched levels. For now, the DAX is holding up, but the market still looks sensitive to any fresh change in the Middle East narrative.
Oil and inflation fears are still shaping the near-term mood
The German source argues that the market reaction was driven less by a full repricing of growth and more by the fear that rising oil prices could keep inflation pressure elevated for longer. That matters because Europe is heading into a fresh CPI release while US labour-market data are also due, leaving investors with two near-term catalysts that could reinforce or challenge the inflation story.
If oil rises again while inflation data stay sticky, rate expectations may remain difficult to ease back. That would keep equity investors cautious, especially in markets like Germany where cyclical exposure is still meaningful even if the headline index continues to benefit from structural enthusiasm around technology and industrial exporters.
