DAXEUR

Reports that Germany's new Chancellor Friederich Merz has reached an agreement with the Green Party on a financial package have paved the way for the rise of the Dax40 index. Significant increases observed particularly in defense industry firms placed them among the main sectors supporting the index. Additionally, monitoring the German Central Bank's end-of-month report is crucial today.

The technical analysis of the Dax40 indicates that the prices are trading above the levels supported by the indicators we are monitoring in the short term (13 and 50-period moving averages). As long as the Dax40 stays above the 23146 level, it is possible for us to maintain an optimistic outlook. If the upward trend continues, the levels of 23345 and 23497 may come into focus. However, if a persistent decline below 23146 occurs, negative expectations may arise. In declines, levels 22935 and 22754 should be monitored. The critical level of the day: 23146.