Showdown at the Abyss: Will the DAX Bulls Defend the 25,000-Point Bastion?
The German leading index stands at an absolute crossroads! After the historic and unstoppable march across the magic 25,000-point mark at the beginning of last week, the bulls have recently noticeably run out of breath. The massive gains crumbled mercilessly, and now the new trading week begins with a grueling acid test. But a gigantic bullish signal continues to shine unmistakably on the trading floor: the DAX is still clinging with an iron grip above 25,000 points! If it manages to ignite a fresh, explosive upward impulse now, absolutely nothing stands in the way of a brilliant continuation of the record hunt and further juicy price premiums. However, if this fortress falls, a brutal setback threatens!
Shock Veto on the Iran Deal: Is the Fatal Oil Price Explosion Looming Now?
But a gigantic geopolitical sword of Damocles continues to hang over the Frankfurt trading floor. The U.S. President has completely surprisingly blocked the eagerly awaited Iran peace deal! With his radical veto, he is playing hardball for time to uncompromisingly push through his maximum political goals. Here, however, we must counter a dangerous fallacy: A failure of this deal does not push the price of oil down, but rather threatens to make it downright explode! Exactly these massively rising energy costs would brutally increase the pressure on the already sputtering European and German economy. This toxic diplomatic stalling tactic has the absolute potential to force the DAX lightning-fast into a new, painful downward spiral!
Macro Monday of Truth: Will PMI Data Ignite the Next Stock Market Quake?
To kick off the new trading month of June, an absolute tidal wave of fundamental fateful data is rolling towards unsettled investors! The highly explosive German retail sales kick things off as early as 8:00 a.m. After that, all of Europe will look spellbound at the highly important Purchasing Managers' Indices (PMI): At 9:55 a.m., Germany opens its books, closely followed by the Eurozone figures at 10:00 a.m. The ultimate showdown will then be delivered in the afternoon at 4:00 p.m. by Wall Street with the U.S. ISM Purchasing Managers' Index. These data harbor gigantic volatility! If the global industry surprisingly demonstrates fresh strength and momentum here, this could be exactly the ultimate fuel to catapult the DAX with full force into a grandiose and highly profitable June!
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