DAX: Is this just a dead cat bounce for EU equities?

asked by u/jung_aoi · 14d · 2 answers

Watching the DAX bounce here, feels a lot like pure short covering rather than any real conviction returning to the market. We've seen these pops before, only for them to fade. I'm not seeing fundamental shifts yet that justify sustained upside, especially with global growth concerns still front and center. Convince me I'm wrong.

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  • u/takin25395511· 5 pts· 14d

    It's a fair point on the short covering, and I agree the fundamental picture for sustained upside is still murky. What specific economic indicators or policy shifts would you need to see to change your outlook on EU equities?

  • u/chris_clark· 2 pts· 14d

    It's a fair point on the short covering, but you're also ignoring the fact that a lot of the bad news is already priced in. Fundamentals don't shift overnight, but sentiment can, and that's often enough for a decent relief rally.

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