ECB's hawkish tone and its ripple on the DAX

Interesting to see the ECB's continued hawkish rhetoric despite some softer economic prints out of the Eurozone recently. Lagarde's comments yesterday, hinting at persistent vigilance on inflation, seem to have put a bit of a lid on the DAX's upside momentum. While the market initially digested the latest CPI data fairly well, the central bank's unwavering stance suggests we might not see significant easing of monetary policy any time soon. This sustained higher-for-longer narrative could keep a lid on growth-sensitive sectors, especially those within the German index. I'm keeping a close eye on how this plays out through earnings season; any signs of weakening demand in forward guidance could lead to some significant re-pricing. My watchlist is leaning towards defensives for now, perhaps a bit of rotation out of high-beta names until there's more clarity on when the ECB might truly pivot.