DAX Edges Higher Amid Resilient German Economy, Oil Prices Fall

The German economy has shown resilience in Q2, with GDP growing 0.3% quarter-on-quarter, beating expectations of 0.2%. This is despite high energy costs and weaker Chinese demand.

The IFO business climate rose to 88.8 in August, above the forecasted 87.2 and up from 86.6 in July. Current conditions and future expectations improved, indicating a recovery in confidence.

However, energy prices remain a risk as the region heads towards the winter heating season, with European natural gas prices at their highest level since March and EU gas storage below 63% full.

The DAX trades above its rising trend line and the 50 and 200 EMAs, keeping the broader trend bullish. Buyers will look to reclaim 26,500 and break above 26,580 to create fresh record highs.