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US Manufacturing PMI data contributed to the pullback. The ISM Manufacturing PMI rose from 49.3 in December to 50.9 in January. Significantly, the ISM Manufacturing Employment Index climbed from 45.3 to 50.3, while the ISM Manufacturing Prices Index increased from 52.5 to 54.9. These PMI trends reinforced expectations of a more hawkish Fed, weighing on equity markets.<\/p>\n
Looking ahead to Tuesday\u2019s US session, JOLTS job openings will influence sentiment toward the Fed rate path. Economists forecast job openings to drop from 8.098 million in November to 7.880 million in December.<\/p>\n
A larger-than-expected fall may signal weaker wage growth, potentially dampening consumer spending and inflationary pressures. A softer inflation outlook would support a more dovish Fed rate path, potentially boosting demand for German-listed stocks. Lower borrowing costs could raise company earnings and valuations.<\/p>\n
Conversely, an unexpected rise in job openings could temper expectations of H1 2025 Fed rate cuts, impacting the DAX Index.<\/p>\n
Investors should also monitor developments in US trade policy and FOMC members\u2019 comments on the potential economic impact of tariffs.<\/p>\n
The DAX\u2019s trajectory hinges on upcoming private sector PMIs, US labor market data, and central bank forward guidance.<\/p>\n
Beyond the economic calendar, tariff developments could prove pivotal for risk sentiment. Ongoing threats of US tariffs on EU goods and retaliatory moves by China and the EU could spook investors.<\/p>\n
As of Tuesday morning, futures pointed to a testy session. The Nasdaq 100 mini dropped 1 point.<\/p>\n
Despite Monday\u2019s sell-off, the DAX remains well above the 50-day and 200-day Exponential Moving Averages (EMAs<\/a>), affirming bullish price signals.<\/p>\n If the DAX breaks above 21,500, the Index could rise toward its record high of 21,801 next. A breakout above 21,801 could pave the way for a rally toward 22,000.<\/p>\n Conversely, a DAX break below 21,350 could signal a fall toward 21,000. A fall through 21,000 may bring 20,750 into play.<\/p>\n With the 14-day Relative Strength Index (RSI) at 67.04, the DAX could climb to 21,801 before entering overbought territory (RSI higher than 70).<\/p>\n