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DAX Set for Another Leg Down as Rate-Cut Hopes Fade

Shrinking odds of a December Fed cut have left traders highly reactive to near-term catalysts.

Overview

  • Pre-market pricing by IG puts the index around 23,291, threatening a break below October lows with the next notable level near the September trough at 23,284.
  • CME FedWatch now implies roughly a 47 percent chance of a December rate cut, down from nearly 94 percent a month ago.
  • Market focus turns to delayed U.S. macro releases, with the September jobs report scheduled for Thursday after the shutdown postponements.
  • Nvidia reports after Wednesday’s close, a key check on the durability of this year’s AI-led rally as valuation concerns persist.
  • Risk aversion has broadened, with Wall Street falling Monday (Dow −1.2%, S&P 500 −0.9%, Nasdaq −0.8%), Asia sliding, Bitcoin hitting its lowest since April, and both Brent crude and gold easing.