DAX Fails to Defend 25,000: Bulls Trapped in a Geopolitical Stranglehold
The DAX rollercoaster continues its wild ride, testing the nerves of even the most seasoned investors. For several sessions now, the market has followed a predictable yet frustrating pattern: a positive day is almost immediately wiped out by a negative one, and vice versa. While this trend might suggest that today, Tuesday, is slated for a leap back into the green, predicting the markets is rarely that simple. The DAX is struggling to sustainably defend the 25,000-point mark, slipping back below this psychological bastion on Monday with a loss of 1.05% to close at 24,991.97 points.
A Glimmer of Hope in ifo Data vs. the Shadow of the Iran Ultimatum
A dangerous military escalation is brewing in the Middle East as the deadline for Donald Trump’s ultimatum to Iran regarding its nuclear program approaches. The markets are visibly trembling; the nervousness is almost palpable. This geopolitical tension largely overshadowed a genuine silver lining: the ifo Business Climate Index rose surprisingly well in February to 88.6 points, beating market expectations. It seems German corporate leaders are finally seeing some light at the end of the tunnel.
However, this economic spark wasn't enough to stabilize the index, largely due to the weight of SAP. The DAX heavyweight continues to shed value, dropping roughly 3.9% on Monday to close at €167.04. When the index's "top dog" falters, the bulls face a steep uphill battle to turn the tide.
Afternoon Showdown: US Data and Tech Giants in Focus
Today, Tuesday, will likely be dominated by impulses from across the Atlantic. At 4:00 PM CET, the US Consumer Confidence index will be released—a critical indicator of whether American household sentiment is stabilizing or succumbing to inflationary pressures. Furthermore, the earnings season remains in high gear: while domestic firms like Fresenius Medical Care and MTU Aero Engines report their figures, the tech world is eagerly awaiting updates from Apple and HP.
Technical Summary: A Test of Patience in No Man's Land
Technically, the DAX is trapped in a directionless "up and down" that is grating on market participants' nerves. We are in a classic sideways market that demands immense patience. The 24,800-point zone serves as initial support, while the 25,250 level remains a massive ceiling. Political impulses this afternoon could be the deciding factor: will the bears take full control, or can the DAX launch a fresh assault on the 25,000 mark?
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