ECB Rate Decision and Rising Oil Prices Threaten DAX Rally

The German DAX and global equities are under pressure due to rising energy prices and elevated bond yields. The European Central Bank's rate decision on Thursday is expected to be a hike, as oil prices threaten to re-accelerate inflation.

Rising oil prices have pushed the WTI crude oil price to its highest level since early June, with Brent not far off the key $100 level. Investors are weighing an overall still-positive risk environment against rising energy prices that could keep inflation higher for longer.

The ECB's decision will be crucial in determining the direction of European markets. A rate hike would likely provide a headwind for equities and support the euro, while a dovish stance could hit the single currency.