DAXEUR

The market is strongly pricing in that the ECB will begin its interest rate cutting cycle earlier than the Federal Reserve. This situation could actually serve as a positive catalyst for the DAX index, composed of export-oriented German companies, while weakening the Euro against other currencies. A declining Euro makes German products more competitive in the international market, which has the potential to increase companies' revenues and profitability. However, on the other hand, concerns about economic slowdown and recession, which are the primary reasons for interest rate cuts, could act as a pressure factor on corporate profitability, pulling the index down.