Watching how the DAX reacts to these US yield moves
Morning all. Seeing the $DAX pulling back today, currently around 24671.22. It's been interesting to watch the spillover effects from the higher US yields yesterday – feels like there's still some indigestion in Europe, especially with the German CPI coming in a bit softer than anticipated earlier this week. The 24500 level on the DAX is looking pretty critical for me today. If it breaks, we could see a deeper correction.
My watchlist is definitely skewed towards names that tend to weather higher rates better, or those with less direct exposure to the European consumer at the moment. Still keeping an eye on a few industrials for any potential dip buys if things stabilize, but for now, caution seems to be the play. Curious what others are looking at in this environment?
Good observation on the DAX. That 24500 level is definitely key, especially with the softer CPI creating a bit of a divergence from US inflation trends. Do you think the ECB's messaging will change significantly if this weakness persists?