The DAX has been hammered early on Monday, but then turned around to at least show some fight, as we are treading water in an area of importance.
DAX
The DAX in Germany initially gapped lower at the open due mainly in part to the idea that the United States and Iran could not come together with some type of settlement during peace talks. That being said, Germany's particularly vulnerable to a lot of things right now and with that being said you have to keep in mind that Germany will be held somewhat hostage by the Strait of Hormuz and what's going on there.
Energy inflation is going to be a major problem for Germany and its massive industrial base. Germany as well as the rest of the European Union chose to forego most of their carbon-based energy and now will reap the rewards of potential disruptions.
Sector Performance and Economic Outlook
The handful of sectors that are working in Germany at the moment would be defense, aviation and banking although banking is starting to show cracks due to concerns over private credit exposure and technology sector loans. A perfect example might be Deutsche Bank.
On the brighter side though the European Commission project that the GDP growth for Germany could be 1.1% possibly 1.2% while not overly impressive it is at least positive. This is a market that is currently hanging around the 50-day EMA and the 200-day EMA indicators and I think we're probably going to see a bit of consolidation at the moment in order to determine whether or not there's enough to push this back above the 24250-euro level which obviously would be very bullish.
This is a market that I think given enough time could start to fall but we'll have to wait and see. I don't think it's a particularly bullish market at the moment, but it is trying to at least stabilize.