German DAX leads the pack as European stocks close higher on Monday

European equities saw gains to kick off the new trading week.
Risk appetite recovering on the new week despite macro headwinds.
German economy continues to lag in step with broader Eurozone economic conditions.

Joshua Gibson FXStreet

The German DAX led the charge in European equities on Monday, as investors bid up stocks and saw a healthy rebound in risk appetite after 2024 kicked things off with a retreat in market sentiment.

European economic figures on Monday were broadly better than expected as investor optimism carefully threads the needle on a positive outlook on data. Eurozone Retail Sales for the year through November declined less than expected, falling 1.1% versus the forecast 1.5% decline, compared to October’s YoY figure of -0.8% (revised upwards from -1.2%).

The Eurozone Sentix Investor Confidence index for January rebounded from -16.8 to -15.8, while the Eurozone Consumer Confidence survey index unexpectedly rose from -15.1 to -15.0, versus the market forecast for a steady hold at -15.1.

Eurozone Retail Sales for November also slid exactly as much as investors were expecting, printing at -0.3% compared to October’s print of 0.4% (revised upwards from 0.1%).

Structural economic issues continue to loom over the domestic German economy, with an aging population set to worsen an already-steep labor shortage, and the International Monetary Fund is projecting that Germany will be the only G7 country to see real economic decline in 2023.

Germany’s government budget for 2024 was rejected by Germany’s own top court last November, and Germany is scrambling to find a stopgap for a projected 17 billion Euro funding deficit for 2024.

Despite economic concerns swirling around the Eurozone’s single largest economy, European investors found reasons to buy on Monday, sending the German DAX higher by 122 points to close at €16,716.47, gaining nearly three-quarters of a percent. France’s CAC 40 index also closed up at €7,450, climbing 0.4% and gaining almost 30 points.

The Eurostoxx 600 major index also climbed around 0.4% to close up 1.8 points at €478.18. The London FTSE equity index climbed a little under five points to close at £7,694.20, a scant 0.06% higher.

DAX Technical Outlook

The German DAX etched in a third straight gain on Monday, keeping the equity index on the high end after hitting an all-time high of €16,984.44 in December.

The DAX’s current bull run kicked off from a six-month low of €14,618.09, climbing over 16% bottom-to-top.

The DAX is trading into lofty chart territory well above the 200-day Simple Moving Average (SMA) near €15,800, and a bullish crossover by the 50-day SMA is accelerating technical support at the €16,000 major handle.

DAX Daily Chart

DAX Technical Outlook

DAX

Overview
Today last price	16709.16
Today Daily Change	95.59
Today Daily Change %	0.58
Today daily open	16613.57

Trends
Daily SMA20	16687.52
Daily SMA50	16041.61
Daily SMA100	15750.96
Daily SMA200	15830.07

Levels
Previous Daily High	16629.59
Previous Daily Low	16434.4
Previous Weekly High	16945.4
Previous Weekly Low	16434.4
Previous Monthly High	16984.44
Previous Monthly Low	16229.16
Daily Fibonacci 38.2%	16555.03
Daily Fibonacci 61.8%	16508.96
Daily Pivot Point S1	16488.78
Daily Pivot Point S2	16364
Daily Pivot Point S3	16293.59
Daily Pivot Point R1	16683.97
Daily Pivot Point R2	16754.38
Daily Pivot Point R3	16879.16

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

GBP/USD holds range below mid-1.3600s amid Fed risks and Iran tensions

The GBP/USD pair extends its sideways consolidative price move for the second straight day, and trades around the 1.3630 area during the Asian session. The US Dollar is looking to build on its modest recovery from the lowest level since May 14, and is acting as a headwind for the currency pair. The lack of follow-through selling warrants some caution for bearish traders.

EUR/USD gains support amid hawkish ECB expectations, subdued US Dollar

EUR/USD inches higher after posting minor losses in the previous day, trading around 1.1670 during the Asian hours. The pair finds support as rising oil prices, elevated bond yields, and escalating Middle East tensions drive Eurozone inflation concerns. These factors have boosted expectations for a more hawkish stance from the European Central Bank, which is widely anticipated to deliver a 25-basis-point rate hike in September.

$4700 tested as Gold pulls back but bullish potential remains intact

Gold has pulled back sharply from fresh 15-week highs of $4,697, snapping a two-day uptrend in Asia on Tuesday. The US Dollar (USD) holds onto recovery gains, capping further upside in the bullion.

Bitcoin tops $80,000 as US Treasury fights high yields – AERO, VIRTUAL rally

Bitcoin extends gains above $80,000 as broader market risk-on sentiment persists. The scarce asset could extend its rally as the US Treasury combats high yields in the long-dated bond market, with further interventions on the horizon. Aerodrome Finance (AERO) and Virtuals Protocol (VIRTUAL) emerged as top performers over the last 24 hours.

Will Jackson Hole ignite Gold and Silver’s next explosive breakout?

The 2026 Jackson Hole Economic Policy Symposium arrives at a pivotal moment. The U.S economy faces record debt, elevated borrowing costs, a weaker dollar and renewed momentum across hard assets. For The Gold & Silver Club, the backdrop increasingly validates its early-year call: “2026 will be the Year of Hard Assets.”

$20 billion offered, $2 billion taken: Why Treasury doubled its buyback cap

The US Treasury moved off its own calendar on Wednesday, and that is the part worth sitting with. At 12:32 GMT, the department said it would at least double the size of liquidity support buyback operations in the 10-year to 20-year and 20-year to 30-year sectors, lifting the maximum from $2 billion per operation to at least $4 billion, effective September 9 and running to November 4.