FRANKFURT, Jan 21, 2026, 18:30 CET
- DAX (DE40) futures slipped toward 24,500 as U.S.-Europe trade frictions persist
- Analysts identified 24,000 to 24,700 as the near-term test zone for German stocks
- Sterling held steady against the dollar despite weaker UK labour-market figures.
DAX futures slipped on Wednesday, inching toward the 24,500 level as worries over U.S. tariff threats involving Greenland intensified. XTB warned of a steeper drop, noting 24,000 as the next critical support, while the 200-day exponential moving average — a major long-term trend gauge — sits near 23,800. 1
The Greenland dispute has escalated from background chatter into a tangible trade risk, triggering a broad risk-off move across stocks, currencies, and bonds. Tuesday’s trading reignited the “Sell America” theme, a phrase that made rounds last April amid tariff talks, Reuters noted. 2
Europe is digging in, raising the odds that market jitters will spur actual policy action. Following Trump’s Greenland demands and tariff warnings, the European Parliament stopped work on the EU-U.S. trade deal. Bernd Lange, head of the trade committee, said the Turnberry agreement is effectively broken by these recent threats. 3
European shares were uneven early Wednesday, with banks and financial services sectors leading losses as investors stayed cautious ahead of new signals from Davos. Oliver Jones, Rathbones’ head of asset allocation, cautioned, “It is quite dangerous to focus too narrowly on what Trump says day-to-day.” 4
Headlines keep shifting, turning chart levels into a quick barometer of market nerves. Support marks the price zone where buyers typically jump in; resistance is where rallies often stall.
An Investing.com analysis flagged initial DAX support near 24,700, noting that a slip below could push the index toward the 50-day simple moving average near 24,250, then potentially down to 24,000. On the FX front, GBP/USD held just above 1.3350, edging back toward 1.35, with resistance seen at 1.3550. 5
Equiti said the DAX-40 fell 1.34% to 24,959 points Tuesday, pressured by escalating trade and geopolitical strains. They pointed to a new graduated tariff plan, set between 10% and 25%, targeting several European nations. The firm sees 24,600 as the next support level, with a more substantial floor at 23,100. They also flagged the RSI still sitting in overbought territory, while the MACD showed bearish divergence. 6
UK labour market data this week pointed to a slowdown as the Bank of England weighs the pace of rate cuts. Payrolls, measured by a tax-office metric, fell 43,000 in December. Wage growth also eased, while unemployment held steady at 5.1%. Suren Thiru of the Institute of Chartered Accountants in England and Wales called the situation “a more problematic phase” for jobs. 7
German exporters, especially carmakers, always face the brunt when tariff talks flare up. That explains why the DAX has been reacting sharply to trade news this week. Currency movements matter too: a softer dollar tends to boost European risk assets, at least in the short term.
The key issue now is whether tariff threats will ramp up again or cool off. Markets rallied after Trump adopted a softer tone on Greenland at Davos. “The market bounced when he said we wouldn’t use force,” said Mark Hackett, chief market strategist at Nationwide. 8
Traders are zeroing in on a narrow band: will the DAX hold between 24,500 and 24,700? Is 24,000 at risk of breaking? Sterling hovers close to 1.35, testing its resilience as fresh UK data and central bank signals roll in.
