Overnight summary
Global equities extended their rally, with the Dow Jones, S&P 500, and Nasdaq 100 all closing at record highs and Asian markets echoing the strength. Taiwan’s benchmark hit an all-time peak, Japan’s Nikkei 225 rebounded toward recent records, and solid gains were also seen across South Korea, Hong Kong, and mainland China. In Europe investors embraced risk assets, buoyed by optimism over central bank support.
Attention remains firmly on the Federal Reserve (Fed) as markets anticipate policy easing at the 17 September meeting amid ongoing labour market weakness. While traders largely expect at least a quarter-point rate cut, the outlook hinges on inflation data due Thursday. Strong readings could revive stagflation concerns and complicate the Fed’s trajectory, though markets are currently pricing in 66 basis points (bp) of cuts by year-end.
Meanwhile, commodities reflected broader geopolitical tensions: gold steadied after recent record highs, crude oil climbed following Israel’s strike on Hamas leadership, and NATO forces scrambled air defences after Russian drone attacks on Ukraine.
DAX 40 rejected by resistance
The DAX 40 is swiftly coming off its mid-to-late July and late August resistance area at 23,882 – 23,978.
The 4 July low at 23,703 represents a possible downside target level, provided the resistance zone continues to cap as it did last week. Further down lies Tuesday’s low at 23,634.
DAX 40 daily candlestick chart