Eurozone Inflation at 4-Month Low, DAX Index Rises as Rate Cut Bets Intensifies

From Investing.com: 2025-04-01 09:13:00

Inflation Outlook Moving Forward: The short-term outlook for inflation is uncertain due to US tariffs potentially lowering eurozone inflation. ECB President Lagarde hinted at rate cuts in March. Eurozone’s tight job market and lower-than-expected inflation support the case for another rate cut. Markets are pricing in an 82% chance of a 25 bps rate cut at the April 17 ECB meeting.

ECB Interest Rate Expectations: Markets are preparing for ‘liberation day’ tariffs from President Trump. White House staff may introduce a 20% tariff on most imports into the US. The revenue from tariffs could be used for tax refunds or dividends, impacting global markets.

Technical Analysis – DAX Index (DAX 40): The DAX index has had a strong 2025 YTD but recent technicals suggest a potential correction. A break below the neckline at 22405 could lead to a selloff amid President Trump’s tariff announcements. Immediate resistance levels are at 22886, 23200, and recent highs at 23454. Support levels are at 22405, 21758, and the 200-day MA at 21164.



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