Investors are feeling uneasy due to recent developments in the US economy, particularly the rise in inflation.
The Consumer Price Index (CPI) for October increased to 2.60%, up from 2.40% in September, while the core inflation rate remained steady at 3.30%.
This increase in inflation is causing investors to reassess their strategies as they await further insights from Federal Reserve Chairman Jerome Powell.
The potential trade policies of the incoming US administration, led by Donald Trump, are no longer a major concern for investors.
The focus is now on the Federal Reserve's monetary policy, especially after the recent interest rate adjustments.
The DAX 40, representing Germany's leading companies, is sensitive to global economic trends and is currently navigating a complex landscape.
Traders can consider knock-out certificates as a trading strategy in this volatile environment.
Put options with knock-out levels above the current technical resistance zone at 20,000 points may be appealing for those anticipating a decline in the DAX 40.
Conversely, bullish traders might consider call options with knock-out levels below 12,800 points.
The interplay between US economic data, Federal Reserve policy, and potential trade restrictions will continue to shape market dynamics.
Traders are advised to stay vigilant and adaptable in their strategies as significant data releases are expected in the coming days.