ECB Meeting Looms Large as DAX Struggles with 26,000
The European Central Bank meeting looms large as investors await Christine Lagarde's decision on whether a single rate hike is enough to control inflation or risk jeopardizing economic recovery.
The DAX struggles with the 26,000 level, while other markets in Asia rally due to encouraging fundamental data from China and Japan. China's trade surplus widened sharply, driven by exports of semiconductor technology, and Japan also reported positive trade figures that may fuel expectations of an interest rate hike next week.
The Bank of Japan is intervening heavily to defend the yen, which could contribute to higher US Treasury yields as investors convert cheap loans into government bonds. Brent crude approaches $100 a barrel, adding pressure on consumer sentiment and prices.