Technically, the DAX is not yet off the hook – the oil price is still under observation
The bottom that the German share index formed last week has not yet been confirmed from a technical point of view. For such a confirmation, it could fall again in the coming days to the area of the interim highs from the beginning of last week by 15,250 points. Then it would depend on the bargain hunters again.
The rally that has been driven by monetary policy, among other things, is increasingly being scrutinized. A change of course in the Fed’s monetary policy, initiated by a reduction in bond purchases later this year, seems a foregone conclusion. That is why investors are increasingly concerned with the question of whether rising share prices and a tighter monetary policy with higher interest rates can and will go hand in hand in the future.
Probably some of them want to see proof that the price of oil is not marching to $ 90 or $ 100. An oil price at this level is likely to lead to a reassessment of the central banks’ inflation, which is still viewed as temporary, and to more rapidly rising interest rates. This is a scenario that is not one of the most desirable for investors in Frankfurt either.