DAXEUR

Europe's leading index DAX is completely focused on news coming from the US and seems to have tied its fate to the data from across the ocean. A dovish NFP report that investors are expecting would not only ease the hand of the FED but also the ECB, triggering global risk appetite by paving the way for interest rate cuts. This positive wave has the potential to carry the DAX index towards a rally into the 28990 point area by breaking the resistance at 23800 points. In a contrary scenario, where strong NFP data is encountered, a global "flight to safety" mode would be activated. Rising bond yields and the sidelining of recession concerns could pressure the stock markets, leading to a break of the 23550 support in the DAX and triggering a sharp sell-off towards 23180 points.