DAX Surges to 22,471 as Peace Talks Lift Markets

Market Overview – Thursday, February 13, 2025

Global stock markets surged as Ukraine-Russia peace talks gained traction, offsetting concerns over rising U.S. inflation. European and U.S. futures followed Asian markets higher, buoyed by Trump’s negotiations and China’s push for peace.

Key Market Moves:

• U.S. Inflation Hits 18-Month High
• CPI rose to 3.0% YoY (vs. 2.9% prior)
• Core CPI increased to 3.3% YoY
• Monthly inflation jumped from 0.4% to 0.5%, defying expectations of a slowdown
• Market reaction: Fed rate-cut expectations pushed to Q4 2025 (only 0.25% cut expected this year)
• Treasury yields climbed as investors priced in higher-for-longer rates
• U.S. equities dipped, while the USD strengthened

 

• Oil Prices Drop
• Hopes of eased Russian sanctions drove crude lower
• Nat Gas is up.
• Energy markets remain volatile amid geopolitical uncertainty

 

• Gold Nears Record Highs
• Inflation fears and safe-haven demand pushed gold to the brink of record highs

 

• Trade Tensions Resurface
• Trump hinted at reciprocal tariffs, reigniting trade war fears
• The euro strengthened on peace optimism

DAX Technical Analysis 4 Hour chart

The Germany 40 (DAX) on the 4-hour chart continues its bullish momentum, reaching a new high at 22,471.3. The price remains well above the 20, 50, 100, and 200 EMAs, showing strong uptrend support. However, a slight pullback from the highs indicates that buyers may be taking profits or facing some resistance.

The RSI is at 79, approaching overbought levels, while the Stochastic RSI is at 100, suggesting that momentum is stretched, and a short-term retracement or consolidation is possible. Despite this, as long as price stays above 22,128.8 (previous resistance turned support), the uptrend remains intact.

If the price breaks and holds above 22,471, the next potential upside targets could be 22,600-22,750. However, if a pullback occurs, 22,128 and 21,873 (50 EMA) are key support zones to watch. A break below these could signal a deeper retracement toward 21,500-21,000.

 

Japan Avoids Trade War Impact

• Trump’s Tariffs Exclude Japan (for now)
• Japan maintains low tariff levels, avoiding direct trade tensions
• PM Shigeru Ishiba pledged $1 trillion in U.S. investments (AI, semiconductors, EVs)
• Japan’s Direct U.S. Investments (2023): $780 billion (largest global investor in the U.S.)
• Steel & aluminum tariffs have minimal impact on Japan’s corporate earnings

UK Economy Outperforms

• UK GDP Growth Beats Expectations, lifting the pound

 

Events today

13:30     USD              Initial Jobless Claims       Expected      217K, Last   219K  

13:30     USD              PPI (MoM) (Jan)              Expected      0.3%. Last    0.2%

Earnings today

Palo Alto Networks (PANW) will report postmarket with an expected EPS of $0.42, expected stock price move of $13.4320, call volume of 36,885, put volume of 21,814, and stock volume of 6,345,650.