The DAX is back near a key psychological level
The DAX is heading into the session with investors more cautious again, after renewed military tension involving Iran pushed geopolitics back to the centre of the market narrative. The source article notes that the index is effectively testing the round 25,000 level, with US headlines and the direction of oil prices shaping the mood before the European open.
Oil is the clearest transmission channel. A renewed rise in crude prices adds pressure to energy-sensitive European stocks, while the latest moves in gold and silver suggest investors are rotating around risk and safe-haven trades rather than embracing a simple risk-on backdrop.
Salesforce adds to doubts about stretched US equities
US equity sentiment is also less settled after Salesforce missed profit expectations and its shares weakened after hours. The move matters because it lands at a point where investors are already questioning whether the US market has run too far too quickly.
For the DAX, that is important because Frankfurt is still taking many of its cues from Wall Street. The source points to 36 of the 40 DAX constituents trading in negative territory before the open, with only Munich Re, Adidas, Fresenius and Rheinmetall showing small gains.
US data could decide whether stagflation fears return
Today's US calendar is unusually heavy, with labour-market figures, GDP, durable-goods orders, consumer spending and the core PCE reading all due. That combination touches almost every major macro question currently facing investors: growth, demand, inflation and the path for Federal Reserve policy.
