FRANKFURT (dpa-AFX) - Currently sitting at its lowest level in nearly three weeks, the Dax is expected to tread water at the open on Tuesday. Two hours before the Xetra start, broker IG pegged the German benchmark index at 24,620 points, marginally above the previous day's close. At this level, investors continue to look up at the 21-day moving average, which the Dax slipped below at the start of the week amid the recent global sell-off.
Technical analyst Martin Utschneider of broker Robomarkets noted this morning that the balance of power between bulls and bears is currently neutralized. In New York, tech stocks rebounded the previous evening but failed to gain further momentum after the European market close. In Asia, a strong recovery was seen particularly in South Korea following Monday's sharp losses, which had been less pronounced or absent in Europe.
The prevailing uncertainty in the Middle East remains a persistent concern for investors. Following a dangerous new escalation in the conflict between Iran and Israel, the arch-rivals have temporarily halted their reciprocal attacks. However, both sides have threatened even more intense hostilities should their respective conditions be violated. These first direct exchanges in two months threaten to undermine U.S. President Donald Trump's efforts to bring an end to the conflict with Iran./tih/zb
