FRANKFURT, Jan 21, 2026, 18:30 CET
- DAX (DE40) futures dipped toward 24,500 amid ongoing U.S.-Europe trade tensions
- Analysts pinpointed 24,000 to 24,700 as the immediate test range for German stocks
- Sterling stayed firm versus the dollar, even with softer UK labour-market data coming in
DAX-linked futures pushed lower Wednesday, edging closer to the 24,500 mark amid concerns over U.S. tariff threats linked to Greenland. XTB flagged the potential for a sharper decline, pointing to 24,000 as the next key level, while the 200-day exponential moving average — a key long-term trend indicator — hovers around 23,800. (Xtb)
The slide is significant because the Greenland dispute has shifted from mere background noise to a real trade threat. This shift has driven investors into a risk-off mode across stocks, currencies, and bonds. Tuesday’s action brought back the so-called “Sell America” trade, a phrase traders used last April during the tariff announcements, Reuters reported. (Reuters)
Europe is pushing back harder, increasing the chance that market unease will lead to concrete policy moves. After Trump’s demands over Greenland and tariff threats, the European Parliament halted progress on the EU-U.S. trade deal. Bernd Lange, chair of the trade committee, said the recent threats had effectively shattered the Turnberry agreement. (Reuters)
European shares showed mixed moves earlier Wednesday, dragged mainly by banks and financial services as investors held back ahead of fresh cues from Davos. Oliver Jones, Rathbones’ head of asset allocation, warned, “It is quite dangerous to focus too narrowly on what Trump says day-to-day.” (Reuters)
Headlines keep shifting, turning chart levels into a swift gauge of market jitters. Support marks the price zone where buyers usually step in; resistance is the point where rallies often hit a wall.
An Investing.com analysis identified initial DAX support near 24,700, warning that a drop below could open the way to the 50-day simple moving average around 24,250, followed by the 24,000 level. On the FX side, GBP/USD hovered close to 1.3350 and was making a move back toward 1.35, with resistance pegged at 1.3550. (Investing)
Equiti reported the DAX-40 dropped 1.34% to 24,959 points on Tuesday amid rising trade and geopolitical tensions. They highlighted a proposed graduated tariff schedule, ranging from 10% to 25%, affecting several European countries. The firm identified 24,600 as near-term support, with a deeper floor at 23,100. Additionally, they noted the RSI remained in overbought territory while the MACD indicated bearish divergence. (Equiti Default)
UK data this week revealed signs of a cooling labour market as the Bank of England considers how quickly to cut rates. A tax-office payrolls metric dropped by 43,000 in December, wage growth slowed, and the unemployment rate remained steady at 5.1%. Suren Thiru from the Institute of Chartered Accountants in England and Wales described the jobs market as entering “a more problematic phase.” (Reuters)
German exporters—carmakers in particular—are on the front line whenever tariff discussions heat up. That’s why the DAX has been so closely tied to trade headlines this week. The currency side plays a role as well: a weaker dollar can support European risk assets, at least for now.
The main question now is if the tariff threats will escalate or ease once more. After Trump took a gentler stance on Greenland at Davos, global markets recovered. “The market bounced when he said we wouldn’t use force,” noted Mark Hackett, chief market strategist at Nationwide. (Reuters)
Traders are focused on a tight set of markers: can the DAX stay within the 24,500–24,700 range? Will 24,000 give way? And can sterling maintain its grip near 1.35 amid ongoing UK data releases and central bank cues?
