Death Zone 24,000 Points: Will the Toxic Double Shock Drag the DAX into the Abyss?
The German leading index continues to bleed out unstoppably! On Wednesday, the DAX took the next brutal blow, plunging by 0.97% to close at a fatal 24,195.31 points. The magic and psychologically all-important 24,000-point mark is now drawing menacingly close! A toxic double problem is mercilessly cutting off the market's air: exploding energy prices driven by the escalating Iran war are colliding with a catastrophically weakening German economy that simply will not wake up from its coma! Investors are now desperately clinging to the hope that the U.S. President, as a self-proclaimed dealmaker, will intervene at the very last second. If he lets the markets crash completely in the face of massive U.S. inflation, a historic bloodbath threatens, which would force the Fed and the ECB to finally choke off the economy!
Tech Dream Shattered: SAP Plunges—Will the Iron 150-Euro Fortress Fall Now?
Absolute disillusionment reigns on the individual stock floor! The fatal tech weakness of Wall Street is relentlessly dragging the DAX giant SAP down into the depths. With a painful markdown of 1.1%, the freshly, laboriously established upward trend is being choked off in the blink of an eye! For the SAP stock, the coming days are about sheer survival: the massive technical charting support at 150 euros must be held at all costs, otherwise an uncontrolled plunge threatens! Heidelberg Materials also came massively under the wheels, pushing the leading index further deep into the blood-red zone with a bitter minus of 1.3%.
Interest Rate Madness on Fateful Thursday: Is the ECB Driving Us Straight into the Stagflation Trap?
From a charting perspective, every single alarm bell is flashing, and now the absolute fundamental bombshell threatens! This Thursday, the global financial world is looking in panic at the ECB. The market firmly expects the next hard-hitting interest rate hike—an unbelievable paradox! Because this brutal interest rate club will not lower the energy prices driven by geopolitical crises by a single cent. Instead, the central bankers seem to feel compelled to strike blindly, risking the complete destruction of the already ailing economy in the process. Europe is thus steering straight toward the ultimate nightmare: If a deadly economic standstill meets inflation that has spiraled out of control, the merciless stagflation trap will irrevocably snap shut!
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