Week begin on a challenging note for Dax, resulting in an effortless defeat.
In the financial world, the German DAX index has been making headlines, reaching new highs despite economic stagnation in Germany. Experts like Susana Cruz from Panmure Liberum are optimistic about further gains in 2025, attributing this to expected Eurozone economic improvement, potential ECB rate cuts, and rising Chinese demand. However, geopolitical risks may still weigh on certain industries.
The CIO from Bank Cler, on the other hand, has maintained a neutral position, staying invested without predicting strong rises or falls in DAX prices. Analysts at Morningstar have also noted that some German stocks are currently undervalued, with Bayer expected to maintain steady performance despite some earnings declines.
Monday afternoon saw slight movements in the European common currency and the oil price. The one dollar was trading at 0.8593 euros, while the European common currency strengthened slightly, with one euro trading at 1.1638 US dollars.
Andreas Lipkow, a market expert, described the current trading on the Dax as "relatively quiet price ranges" with trading impulses being rare. This sentiment is reflected in the Dax's narrow trading range of around 60 points at the start of the week.
The German leading index started the week with little movement, but by midday, it had slipped slightly into negative territory, trading at around 24,230 points, down 0.2 percent from the previous close. The oil price also saw a slight decrease, with a barrel of North Sea Brent crude trading at 68.96 US dollars, a decrease of 32 cents or 0.5 percent from the previous day's close.
In terms of top performers on the Dax, Vonovia, BASF, and Daimler Truck were among the standouts, while FMC, Rheinmetall, and Airbus were among the weakest. Andreas Lipkow also noted a classic summer trading pattern, with most investors standing on the sidelines.
As the US quarterly reporting season picks up speed in Europe, it remains to be seen how it will impact other companies and the overall performance of the DAX.
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