DAX Continues to Slide, but a Reversal Is Lurking
The DAX didn't quite stick to its recent "up and down" script this past Tuesday. By the closing bell, the index posted a minor loss of 0.02%, settling at 24,986.25 points. However, the session was more dramatic than the final number suggests: the DAX traded significantly lower during the day but managed to pull itself up by its bootstraps, nearly clawing back to a break-even finish. This afternoon recovery is often a classic signal that a reversal is imminent, making a "Green Wednesday" a very real possibility.
Tariff Turmoil in the US: Legal Wins vs. Political Reality
Interestingly, the US markets couldn't provide much sustainable help on Tuesday. There seems to be too much clutter in US economic policy right now to foster real investor confidence. Even as the Supreme Court ruled certain broad tariffs unlawful, the Trump administration responded almost instantly by raising others. In this environment, judicial rulings appear more symbolic than practical, creating a fog of uncertainty for key industries. This unease transfers directly to investors, and with the high-stakes situation in the Middle East still simmering, genuine optimism is struggling to take root.
This caution was visible in the DAX individual rankings as well. Volkswagen finished as one of the laggards with a 0.5% drop, while Bayer and Siemens Energy both exited the floor with 0.4% losses.
The "Nvidia Factor": A Mid-Week Catalyst for SAP and Infineon
As we hit the middle of the week, global trading will be largely dictated by one name: Nvidia. The engine of the AI boom is set to open its books after the US market close. In the DAX, all eyes will be on SAP and Infineon, as both heavyweights are likely to feel the ripple effects of Nvidia's guidance. Additionally, domestic investors will be parsing the latest reports from E.ON and Fresenius, both of which are reporting today.
Technical Summary: Bulls Fishing for a Bottom
Technically, Tuesday can be interpreted as a reversal day. The index dipped below Monday’s low, but that was the exact moment the bulls stepped back in to take control. In chart analysis, this "false breakout" to the downside is often a good omen for a move higher on Wednesday. If the DAX can sustainably reclaim the 25,000 mark today, the path upward is back on the table.
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