- The DAX fell early on Wednesday, as traders are still following the interest rate markets, with concern about energy inflation.
- This index continues to hover near the 25,000 level.
The DAX has fallen pretty significantly during the trading session here on Wednesday as traders continue to look at interest rates climbing as a major problem. And the interest rates climbing, of course, are all about the idea that energy inflation is coming down the road. I do think that's probably going to hit Germany particularly hard and its industrial base, obviously, which is a major influence on what happens with the DAX going forward.
All things being equal, this is a market that I am bullish on given enough time, but I also recognize that we would see a lot of choppiness.
Market Levels and Risk Appetite
The markets at this point are dancing around the 25,000-euro level, and I think that remains a bit of a magnet for price. But I also recognize that if we can break to the upside, the 25,500 level is a bit of a ceiling, and breaking above that allows the next leg higher.
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I do think you continue to see a lot of questions out there when it comes to risk appetite and, of course, energy. With the lack of progress, the Americans and the Iranians are making, I think that continues to influence everything, including the DAX.
That being said, given enough time, the Germans are supposed to throw a ton of money into infrastructure this upcoming year, and if they do in fact do that, it would be a very positive sign for the DAX. The DAX, of course, is the first-place traders look to when it comes to the European Union and will give a bit of influence to other indices as well.
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