The DAX is the benchmark index of the Frankfurt Stock Exchange, Germany, and is made up of the country’s 40 largest companies. As such, it is an important indicator of the economic health of Germany and Europe in general. The uncertainty surrounding the US debt ceiling could have a negative impact on the global economy, and could impact equity markets around the world, including the DAX.
In addition to concerns over the US debt ceiling, investors are also awaiting construction output and consumer confidence data from the eurozone to gauge the region’s economic health. These data may also have an impact on the performance of German indices.
Despite the uncertainty, some analysts believe the DAX still has upside potential. The German economy has been showing signs of improvement in recent months, and this could be a boost for the index.
Furthermore, the US Federal Reserve has indicated that its priority for the June meeting is a pause in monetary policy tightening rather than another increase, which could be positive for equity markets in general.
In any case, the uncertainty surrounding the US debt ceiling in the coming weeks is something investors should be watching closely. Any resolution or lack thereof could have a significant impact on markets around the world, including the DAX.
DAX and the uncertainty about the debt ceiling in the United States
Scenario 1: A 30-minute candle close below 16,247.5 will increase the probability of a fall to the target of 16,205.7 points.
Scenario 2: A 30-minute close above 16,308 will target a rally to 16,337.1 and an extension* of 16,401.
