Dax Index News: German Factory Orders Surge as Markets Await Key US Jobs Data

Investors should also monitor US-China and EU trade developments, which will be crucial for risk sentiment. An escalation in trade tensions could impact demand for risk assets, while progress toward trade deals may lift market sentiment.

Natixis Asia Pacific Chief Economist Alicia Garcia underscored US tariff risks, stating:

“Europe should ‘get ready’ for tariffs. He seems to be picking fights with those countries who are closer. The lower proposed duty on China was likely a result of Trump’s desire to strike a ‘deal’ of some kind with Beijing.”

Near-Term Outlook

The DAX’s trajectory hinges on upcoming German economic indicators, US labor market data, and central bank forward guidance.

• Weaker economic data and more dovish policy stances could drive the DAX toward its all-time high of 21,801.
• A tighter US labor market, upbeat German data, and more hawkish policy outlooks may pull the DAX toward 21,000.

Beyond the economic calendar, tariff developments could prove pivotal for risk sentiment. Ongoing threats of US tariffs on EU goods and retaliatory measures against China’s tariffs could impact global markets.

As of Thursday morning, US futures pointed to a positive session, with the Nasdaq 100 mini advancing by 28 points.

DAX Technical Indicators

Daily Chart

Despite ongoing US tariff uncertainty, the DAX sits well above the 50-day and 200-day Exponential Moving Averages (EMAs), sending bullish price signals.

If the DAX breaks above 21,750, the Index could climb toward its record high of 21,801 next. A break above 21,801 could pave the way for a move toward 22,000.

Conversely, a DAX drop below 21,500 could signal a fall toward 21,350. A fall through 21,350 may bring 21,000 into sight.

With the 14-day Relative Strength Index (RSI) at 71.32, the DAX sits in overbought territory (RSI higher than 70). Selling pressure may intensify at the morning high of 21,731.