Breakout Above 24,000 Points: Is the DAX Hitting the Turbo After the Ceasefire?
What fireworks on the Frankfurt trading floor! The German leading index frenetically celebrated the relieving news of a ceasefire. The DAX kicked off Wednesday's trading with a massive upward gap, ruthlessly maintained its bullish momentum, and closed with a gigantic gain of 5% beyond the magic 24,000-point mark. But beware: the high may have already been set mid-week. The fear of new geopolitical tremors remains the dominant narrative. Investors are reacting extremely nervously to every news ticker—whether it's about the final reopening of the Strait of Hormuz or even the highly dangerous discussions about a U.S. withdrawal from the military alliance. If the young upward trend is to survive, the 24,000 bastion must now absolutely be defended.
Continental in a Frenzy, SAP in Freefall: The Brutal Halving of the Software Giant
Historic extremes played out on the pricing board on Wednesday. While the Continental share outshone the entire index as the radiant daily winner with an outstanding price jump of 6.8%, investors in SAP are enduring true martyrdom. The DAX heavyweight completely rejected the market euphoria and slid by another 2.6%. Anyone who remembers that the stock was recently scraping the €300 mark is rubbing their eyes in disbelief: the SAP share is in an unchecked nosedive and has shockingly cut its value right in half since its record high.
Inflation Shock Ahead? Technical Analysis Warns of Treacherous Price Gap
Fundamental data is now moving mercilessly into focus. Today at 2:30 PM CET, important PCE and price data are on the agenda in the U.S., serving as direct harbingers of inflation. The absolute showdown will then follow on Friday with the official U.S. inflation data. If inflation picks up, it will put a brutal damper on the markets' interest rate cut fantasies. From a technical perspective, the primary goal now is to stabilize the young upward trend. However, Wednesday's massive gap inevitably calls the bears onto the scene. While not every price gap has to be closed immediately, the noticeable selling pressure in after-hours trading is an unmistakable warning sign: this Thursday, we must initially brace ourselves for a painful downward correction in the DAX.
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