DAX Seen Higher as Asian Tech Rebounds

Japanese and South Korean stocks are leading the rebound, with the Nikkei up 0.8% and the Kospi gaining more than 1%. Samsung Electronics and SK Hynix are among the names drawing demand again after the recent selloff in AI shares.

That comes after Wall Street finished lower despite another solid start to U.S. bank earnings. Goldman Sachs and Citigroup beat profit expectations, but the Dow Jones still fell 0.4% and the Nasdaq slipped 0.2%, underscoring that strong company results are not yet enough to fully offset worries about rates, oil and bond yields.

Apple briefly hit a record high in intraday trade, giving a lift to the tech complex, while Microsoft and Taiwan Semiconductor shares remain closely watched as investors try to gauge whether the sector’s recent pullback is over. Apple closed at $343.47 on Wednesday, above its 50-day moving average of $324.45, while Microsoft ended at $533.36, also above its 50-day average of $503.70, but both names are off their highs.

For European investors, the broader backdrop is still dominated by U.S. inflation data due later in the day, which could shape expectations for the Federal Reserve’s next move. Markets are overwhelmingly expecting the Fed to hold rates steady at its Oct. 28 meeting, but any surprise in the inflation print could quickly reset rate-cut bets and hit richly valued tech stocks.

Oil is another constraint. Brent crude was slightly firmer at $106.35 a barrel early Wednesday, keeping pressure on inflation expectations and on sectors sensitive to higher input costs.

The main question for traders is whether the Asia-led tech bounce can broaden beyond a short-covering rally and stabilize global equity sentiment. If it does, it could give the DAX more room to recover; if not, U.S. inflation and bond yields are likely to set the tone for the rest of the session.