Fed Offers No Direction for DAX: Rates Hold Steady Amid Rising Tensions
Investors and traders waited with bated breath for the Fed's decision this past Wednesday and received exactly what the markets had anticipated. For the first time since July 2025, the Federal Open Market Committee (FOMC) decided to hold interest rates steady, keeping the benchmark range at 3.5% to 3.75%.
The Fed’s assessment suggests that economic growth remains solid and the stock market resilient. While newly implemented tariffs are expected to push prices higher, policymakers view this as a one-time event rather than the creeping, long-term effect typical of standard inflation. Consequently, the equity markets reacted with notable restraint.
Gold Explosions and Geopolitical Risks: Pricing in an Iran Strike?
The situation for gold tells a much more dramatic story. Safe-haven demand pushed the precious metal into a vertical climb, with prices exploding toward $5,600 per ounce following the Fed's announcement. This surge suggests that markets may already be pricing in a potential military escalation.
Reports are intensifying that US military assets—including a carrier "armada" led by the USS Abraham Lincoln—are in position and ready to act upon orders at any time. This geopolitical powder keg remains a significant risk for the DAX. For days, the index has been treading water, waiting for a catalyst. A military intervention in Iran could quickly send global equities into a deep dive, given the immense risks such a move poses to the Middle East and Western economies.
SAP and Siemens Energy Defy the Trend
Despite the broader market lethargy, the DAX closed Wednesday with a slight loss of 0.29%, finishing at 24,822 points. The index continues to move sideways just below the psychological 25,000-point threshold.
Within the individual stock rankings, Brenntag emerged as the top performer with a gain of 2.2%, followed by Siemens Energy, which climbed 1.0%. Rounding out the top three was the heavy-hitter SAP, posting an increase of 0.9%.
Technical Summary: Trapped in a Sideways Range
From a technical perspective, the DAX remains stuck within the daily trading range established on January 20, 2026. To date, the index has failed to break out in either direction, leaving the immediate trend neutral but tense. Until a decisive move occurs, investors are advised to keep a close watch on both the chart's resistance levels and the volatile news flow from the Middle East.
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